The Enforcement Directorate (ED) has conducted a series of search operations at 25 different locations in Gujarat, Maharashtra, and Karnataka in relation to an alleged case of GST (Goods and Service Tax) fraud.
As part of the operation, the ED has accused Mohammad Ejaj Bomar of money laundering based on a chargesheet filed by the Bhavnagar Police in Gujarat. It is alleged that Ejaj used fake invoices worth more than Rs 1102 crore to evade Rs 122 crore in GST. The chargesheet filed by the Bhavnagar Police claims that Ejaj utilized 461 bogus companies for this purpose.
The ED has initiated a money laundering investigation based on FIRs registered by the Bhavnagar Police under various sections of the Indian Penal Code (IPC) against Mohammad Ejaj Bomar and others.
The central agencies also conducted searches at the premises of individuals involved in preparing fraudulent documents, which were then used to establish fake firms for wrongfully claiming Input Tax Credit (ITC).
The police chargesheet reveals that the accused used the Aadhar Card details of several individuals to create these shell companies. They allegedly used deceptive methods, such as misleading forms, to deceive people who wanted to update their phone numbers linked to their Aadhar Cards. Subsequently, they used these Aadhar cards to obtain PAN Cards and GST registrations.
According to officials, the accused fabricated fake entities through forged documents to acquire GST registration. These fictitious entities then issued fake invoices to beneficiaries, claiming Input Tax Credits, in exchange for a commission. Payments for these fraudulent invoices were made through banking channels before being settled in cash between the operators of the fake entities and the beneficiaries.
During the investigation, the ED seized various documents, including forms for changing mobile numbers linked to Aadhar cards, fake bills issued by the bogus entities, and digital evidence, under the provisions of the Prevention of Money Laundering Act (PMLA). Additionally, a sum of Rs 29 lakh was seized by the agency.
Further investigation into the matter is currently underway to uncover more details and gather evidence related to the alleged GST fraud case.