ED raids 9 premises in UP, Haryana over Rs 10.28 crore tax fraud

The Enforcement Directorate on Monday searched nine premises across Uttar Pradesh and Haryana as part of a money-laundering investigation into an alleged network that fraudulently generated and transferred input tax credit worth crores of rupees. The searches, conducted by the agency's Lucknow zonal office under the Prevention of Money Laundering Act, covered properties in Muzaffarnagar and Ghaziabad in Uttar Pradesh and Faridabad in Haryana.

The case concerns Jambudwip Exports & Imports Ltd, which is accused of using fabricated invoices and e-way bills to create bogus input tax credit without any corresponding movement of goods. Investigators uncovered circular transactions, rapid movement of funds through several accounts and cash withdrawals involving multiple bogus entities. GST authorities established the fraudulent availment of Rs 9.63 crore in input tax credit and the onward transfer of Rs 10.28 crore, causing loss to the government exchequer. The ED is examining documents and digital records to trace the proceeds of crime and identify the beneficiaries. Further details are awaited.