ED to probe ‘larger conspiracy’ in GST case involving Gujarat journalist
The Enforcement Directorate (ED) has decided to launch a money laundering probe as it wants to investigate a “larger conspiracy” in the matter.
New Delhi: A day after the Ahmedabad Police arrested six individuals including journalist, Mahesh Langa, in a Goods and Services Tax (GST) case, the Enforcement Directorate (ED) has decided to launch a money laundering probe as it wants to investigate a “larger conspiracy” in the matter, people familiar with the development said.
The federal agency has already gathered details of irregularities and is expected to file an ECIR (Enforcement Case Information Report), ED’s equivalent of a first information report (FIR), this week, they added.
“We have information that Ahmedabad Crime Branch’s case pertains to large scale irregularities in availing and passing on bogus ITC (input tax credit) through fake bills by more than 220 companies across the country. These fraudulent entities used forged identities and documents for creating these firms and have caused financial loss to the exchequer running into crores. It needs a deeper look,” said an ED officer, who asked not to be named.
The entry of ED in the probe means there could be more raids in the coming days and even attachment of properties of suspects.
Input tax credit, or ITC, is the tax that a business pays on any purchase of goods and/or services that are used for business.
The Ahmedabad Police on Tuesday raided 14 locations in Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar.
All six accused were sent to 10 days of police custody by a Gujarat court on Wednesday.
After Langa’s arrest, Ajit Rajian, deputy commissioner of police at the Ahmedabad Crime Branch, said that during their investigation, they found that the journalist’s wife was the promoter of one company, which is suspected of creating fake bills by forging documents and diverting funds.
A second official cited above said that “the Directorate General of GST Intelligence (DGGI) has laid special emphasis this year to identify and apprehend the masterminds of fake Input Tax Credit (ITC) and disrupting syndicates, operating across the country”.