The Enforcement Directorate (ED) provisionally attached properties and assets valued at Rs 14.85 crore in Howrah, Hooghly, and Guwahati related to a GST fraud of nearly Rs 100 crore. The attached assets include shareholding worth Rs 11.88 crore in a listed entity and immovable properties linked to the case.
Under the Prevention of Money-Laundering Act, the ED attached these assets through an order on March 30 concerning Input Tax Credit (ITC) fraud. A charge sheet was filed against 15 accused for their role in fake ITC on the same day.
The investigation by the ED is based on an FIR for scheduled offences under various sections of the IPC. Search operations conducted earlier across different locations revealed incriminating evidence and statements were recorded. The probe exposed a non-existent shell entity that fraudulently generated fake ITC worth around Rs 99.31 crore.
The investigation disclosed a network of shell and non-existent entities involved in layering and routing fake ITC. Entities like AC Enterprise, Riya Rishita Enterprise, and others were found to be non-operational at their declared places of business. The probe also revealed the issuance of fake bills for various commodities without actual transactions taking place.
Further investigation revealed that certain companies controlled by individuals received and utilized fraudulent ITC without genuine supply of goods. These entities reported disproportionately high turnovers without legitimate business activities, indicating a systematic process of money laundering.
