New Delhi, 25 August (H.S.): The Enforcement Directorate (ED) has so far recovered a total of Rs 3.6 crore in cash during raids at nine premises in Uttar Pradesh's Muzaffarnagar and Ghaziabad and Haryana's Faridabad, which have been underway since Monday in connection with a fake input tax credit (ITC) case.

The ED said on Tuesday that all the premises searched during the operation have been sealed. The recovered cash and seized digital evidence are being examined. Earlier, by Monday evening, the agency had 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. The ED said the total cash recovered so far during the operation has reached Rs 3.6 crore.

The case is related to Jambudweep Exports and Imports Limited, which is accused of generating and passing fraudulent input tax credit (ITC). The investigation has revealed that the company allegedly generated and passed ITC through fake invoices and e-way bills without any actual movement of goods. The alleged fraud involved extensive circular transactions, rapid layering of funds and cash withdrawals.

GST authorities have confirmed the fraudulent availment of ITC worth Rs 9.63 crore and the passing of ITC amounting to Rs 10.28 crore, resulting in a loss to the government exchequer. The ED's searches were aimed at tracing the proceeds of crime, identifying other beneficiaries and gathering evidence linked to the network.

The ED said further investigation is underway, and documents are being analysed to identify and trace other beneficiaries associated with the network.

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Hindusthan Samachar / Jun Sarkar