Kolkata: The Enforcement Directorate (ED) on Tuesday conducted search operations across Jharkhand, Manipur and Kolkata in connection with a massive fake Input Tax Credit (ITC) scam worth around Rs 658 crore, said sources in the central investigation agency.
The raids were conducted at the premises of individuals and firms suspected of being linked to the fraud. ED’s Itanagar unit is spearheading the operation in coordination with state police forces, sources said.
According to investigators, the case involves firms accused of generating and availing fraudulent ITC through fake invoices without any actual supply of goods or services. Such bogus claims, apart from draining the exchequer, are often tied to money laundering and shell company networks.
Sources from the ED said that the case originates from an FIR of Itanagar Police Station in Arunachal Pradesh, where the complaint was lodged against Rakesh Sharma and Ashutosh Kumar Jha, along with other unidentified individuals, for their alleged involvement in a criminal conspiracy involving cheating and forgery of documents.
The complaint pertains to fraudulent activities by M/s Siddhi Vinayak Trade Merchants (a non-existent entity) wherein Input Tax Credit (ITC) amounting to Rs 99.31 crore was availed on the strength of bogus invoices valued at Rs 658.55 crore, involving 58 shell entities spread across different states. The ED is probing further into the layering of fake ITC and tracing the money laundered in this process. Further investigation into the matter is underway, said agency sources.
Earlier in the day, ED became more active in the multi-crore coal smuggling case in West Bengal and summoned seven more coal traders for interrogation in the matter, sources in the central investigation agency said on Tuesday.
With this, ED has summoned a total of 15 coal traders in connection with the case after the controversies broke out over the ED’s simultaneous raid and search operations at the Indian Political Action Committee (I-PAC)’s office and the residence of I-PAC’s director and co-founder, Pratik Jain, on January 8 in connection with the same coal-smuggling case.
(IANS)
