ED conducts multi-state searches in Rs 658-crore 'fake' ITC scam
Case involves firms accused of generating and availing fraudulent ITC through fake invoices without any actual supply of goods or services
The Enforcement Directorate (ED) on Tuesday carried out search operations across Jharkhand, Manipur, and Kolkata in connection with a massive fake Input Tax Credit (ITC) scam worth around Rs 658 crore.
The searches targeted premises belonging to individuals and firms suspected of links to the alleged fraud.
The operation is being led by the ED’s Itanagar unit in coordination with state police forces.
According to investigators, the case involves firms accused of generating and availing fraudulent ITC through fake invoices without any actual supply of goods or services. Such bogus claims, apart from draining the exchequer, are often linked to money laundering and shell company networks.
The case originates from an FIR registered at the Itanagar police station in Arunachal Pradesh. The complaint was lodged against Rakesh Sharma and Ashutosh Kumar Jha, along with other unidentified individuals, for their alleged involvement in a criminal conspiracy involving cheating and forgery of documents.
The complaint pertains to fraudulent activities by M/s Siddhi Vinayak Trade Merchants, a non-existent entity, wherein ITC amounting to Rs 99.31 crore was availed on the basis of bogus invoices valued at Rs 658.55 crore. The alleged transactions involved 58 shell entities spread across different states.
Sources further informed that the agency is probing additional layering of fake ITC and tracing the money laundered through this process.
