The Enforcement Directorate (ED), Lucknow Zonal Office, on Monday conducted search operations at nine premises in Uttar Pradesh and Haryana as part of a money-laundering investigation into the alleged fraudulent availment and passing of bogus Input Tax Credit (ITC). The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The searches covered premises in Muzaffarnagar and Ghaziabad in Uttar Pradesh and Faridabad in Haryana. The case relates to M/s Jambudwip Exports and Imports Ltd., which is allegedly involved in generating and passing bogus ITC through fabricated invoices and e-way bills without any actual movement of goods.
According to the ED, the investigation has revealed extensive circular transactions, rapid layering of funds and cash withdrawals through multiple bogus or non-existent entities. Investigators suspect that the entities were used to route and layer funds generated through the alleged fraudulent ITC transactions.
GST authorities have established fraudulent availment of ITC amounting to Rs 9.63 crore and passing on of ITC worth Rs 10.28 crore, allegedly causing wrongful loss to the government exchequer. The ED is treating the proceeds arising from the alleged fraudulent transactions as proceeds of crime under the PMLA.
The ED said the searches were aimed at tracing the alleged proceeds of crime, identifying further beneficiaries and gathering documentary and digital evidence connected with the suspected fraudulent ITC network. The agency is also examining the role of various entities and individuals involved in the alleged transactions.
The investigation is continuing, and further details are expected as the agency examines the material and evidence recovered during the searches.
