As part of its campaign against widespread GST fraud, the Enforcement Directorate (ED) conducted search operations in five Gujarati districts, including Ahmedabad, on Friday. The operation was spread out over 25 locations in three states. An accused in Bhavnagar was accused of utilising 461 fictitious companies to generate phoney invoices totaling Rs. 1,102 crore.
In connection with a GST fraud case filed against Mohammad Ejaj Bomar and others under the terms of the Prevention of Money Laundering Act (PMLA), searches were carried out in the cities of Ahmedabad, Gandhinagar, Bhavnagar, Botad, Gandhidham, Mumbai (Maharashtra), and Bengaluru (Karnataka).
The accused individuals who are suspected of creating false documents on the basis of which fictitious GST firms were established were the subject of the search operation. As part of the operation, the organisations that were utilised to provide fraudulent Input Tax Credits (ITC) were also covered.
Based on FIRs filed by Bhavnagar Police for numerous offences punishable under various sections of the IPC against Bomar and other suspects, the ED launched a money laundering inquiry. According to the chargesheet, the suspect changed the mobile numbers associated with other people’s Aadhar cards by offering them financial aid through government programmes. These Aadhar cards were afterwards utilised to obtain PANs and then register for GST.
The defendants utilised fraudulent documents to create fictitious organisations, according to the ED, in order to gain GST registration. Later, by creating fictitious invoices on a commission basis, these bogus firms transferred Input Tax Credits to beneficiaries. Payment for these fraudulent bills was made through banking channels, and the beneficiary and the owner of the fictitious organisation eventually settled the balance in cash.
The ED discovered numerous damning documents, such as forms for updating cell numbers on Aadhar cards, phoney bills issued by these fictitious firms, and other digital evidence. Additionally, they seized 29 lakh rupees worth of cash.
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