ED seizes Rs 3.6 crore cash in massive raids in UP, Haryana case

The Enforcement Directorate (ED) seized Rs 3.6 crore in cash during a massive search operation across nine locations in Uttar Pradesh and Haryana in a case linked to an Import-Export firm for alleged fraudulent availment of bogus Input Tax Credit.

The Enforcement Directorate (ED) has seized Rs 3.6 crore in cash during a massive search operation that began on Monday morning, covering nine premises across Uttar Pradesh and Haryana in the case of an Import-Export firm regarding alleged fraudulent availment and passing of bogus Input Tax Credit (ITC), officials said on Tuesday.

In the more than 24-hour-long search operation, the agency sleuths had seized over Rs 1.1 crore found at a premise in Uttar Pradesh's Muzaffarnagar and from the premises covered in a steel unit based in Ghaziab on Monday evening.

Officials said the search operation at all nine locations in Muzaffarnagar, Ghaziabad and Haryana's Faridabad is closed now.

Details of the Money Laundering Case

The operation, being carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002 by ED's Lucknow zonal office, is now closed.

The case is linked to the Import-Export firm, an entity allegedly involved in generating and passing bogus ITC through fabricated invoices and e-way bills without actual movement of goods.

Officials said ED's investigation has revealed extensive circular transactions, rapid layering of funds and cash withdrawals through multiple bogus and non-existent entities.

Quantum of Fraud

They said Goods and Services Tax (GST) authorities have established fraudulent availment of Rs 9.63 crore ITC and passing on of Rs 10.28 crore ITC, resulting in wrongful loss to the Government exchequer, which constitutes proceeds of crime under PMLA.

The officials further said the searches were aimed at tracing the proceeds of crime, identifying further beneficiaries and unearthing documentary and digital evidence relating to the fraudulent ITC network.

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