VAT refund scam: ED arrests Ludhiana bizman

Tribune News Service 

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Jalandhar, October 24 

The Enforcement Directorate (ED) on Tuesday arrested Raman Garg, proprietor of Jaldhara Exports in Ludhiana, infamously known for the VAT refund scam.

Raman Garg had been evading investigation since long and had not responded to summons.

The ED had also carried out a search at his residence two weeks back, but he was not found.

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.