New Delhi, 24 August (H.S.): The Lucknow Zonal Office of the Enforcement Directorate (ED) on Monday conducted search operations at nine locations in Muzaffarnagar and Ghaziabad in Uttar Pradesh and Faridabad in Haryana in connection with a case involving the alleged generation and passing on of fraudulent Input Tax Credit (ITC). The searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to the ED, the case is linked to M/s Jambudweep Exports and Imports Limited. The investigation has revealed that fraudulent invoices and e-way bills were allegedly generated without any actual movement of goods, thereby facilitating the creation and transfer of fraudulent ITC.

The probe has also uncovered alleged large-scale circular transactions, rapid layering of funds through multiple levels and cash withdrawals through several purportedly fraudulent or non-existent entities. According to the agency, an investigation by GST authorities established fraudulent availment of ITC worth Rs. 9.63 crore and the fraudulent passing on of ITC amounting to Rs. 10.28 crore.

The agency said the alleged fraud resulted in wrongful loss to government revenue. Such loss constitutes proceeds of crime under the provisions of the PMLA.

The ED said the searches were aimed at tracing the proceeds of crime, identifying other individuals who allegedly benefited from the network and collecting documentary and digital evidence linked to the fraudulent ITC network.

The agency said the information that emerged and the evidence recovered during the search operations are being examined. Further investigation in the case is underway.

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Hindusthan Samachar / Jun Sarkar