New Delhi, 24 August (H.S.): The Lucknow Zonal Office of the Enforcement Directorate (ED) conducted searches at nine locations in Muzaffarnagar, Ghaziabad and Faridabad in Haryana on Monday morning in connection with a fake Input Tax Credit (ITC) case. During the searches, the agency recovered more than Rs 1.1 crore in cash from New Rana House in Muzaffarnagar and Sudha Steel in Ghaziabad. Several digital devices, documents and registers were also seized.

According to the ED, the searches were carried out as part of an investigation into an alleged fake ITC racket linked to Jambudweep Exports and Imports Limited. The investigation has revealed that the company allegedly generated and passed on fraudulent ITC through fake invoices and e-way bills without any actual movement of goods.

The alleged transactions involved extensive circular trading, rapid layering of funds and cash withdrawals, the agency said.

GST authorities have confirmed that fraudulent ITC worth Rs 9.63 crore was availed and ITC amounting to Rs 10.28 crore was passed on, resulting in a loss to the government exchequer.

The ED said the searches were aimed at tracing the proceeds of crime, identifying other beneficiaries and gathering evidence linked to the alleged network.

The cash recovered and digital evidence seized during the searches are being examined. The agency said further investigation is underway, with documents being analysed to identify other beneficiaries and establish the wider network involved in the alleged fraud.

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Hindusthan Samachar / Jun Sarkar