ED raids bizman house

Tribune News Service

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Ludhiana, October 11

The Enforcement Directorate (ED) today raided the residence of Raman Garg of Jaldhara Exports, the main accused in the VAT refund scam in Ludhiana.

According to sources, the ED raided Garg's house in Block A at Aggar Nagar. Six or seven officials of the ED took part in the raid that was on till the filing of this report. None was allowed to enter or leave the house. Six policemen have been put on duty to keep a vigil at the house. It was learnt that the team of the ED had come from Jalandhar.

Sources in the ED said documents and digital evidence had been seized from Garg’s place. The Jalandhar team of the ED was led by Additional Director Rajiv Kumar and the raid was carried out under the supervision of Deputy Director Niranjan Singh.

Garg had reportedly claimed bogus VAT refunds from the Excise and Taxation Department in connivance with Rajiv Mehan from Shreya’s International (Yarn) in 2012-13. The Excise and Taxation Department Ludhiana -1 had lodged a complaint with the police on July 18, 2013, alleging that Jaldhara Exports had shown an export of garments worth Rs 33.36 crore to Bangladesh during 2012-13 on the basis of which the firm claimed vat refund of Rs 1.14 crore from the government.

A sum of Rs 67 crore was taken by Jaldhara Exports and Mehan got approximately Rs 47.5 lakh to repay the loans. After the Customs authorities investigated the matter with Petrapole Land, West Bengal, it was confirmed that all shipping bills produced by the firm were forged. The companies of Garg and Mehan had violated the provisions of the Prevention of Money Laundering Act.