The Enforcement Directorate on Monday conducted searches at multiple locations in Uttar Pradesh and Haryana as part of a money laundering probe linked to an alleged GST fraud, officials said.
The searches covered nine premises in Uttar Pradesh’s Muzaffarnagar and Ghaziabad, besides locations in Haryana’s Faridabad, under the Prevention of Money Laundering Act (PMLA).
The case involves Jambudwip Exports and Imports, which allegedly generated and passed bogus Input Tax Credit (ITC) using fabricated invoices and e-way bills without any actual movement of goods, officials said.
According to the ED, the company used circular transactions, layered funds and made cash withdrawals through multiple bogus or non-existent entities. GST authorities have established fraudulent availment of Rs 9.63 crore in ITC, causing a wrongful loss to the government exchequer.
The searches were aimed at tracing the alleged proceeds of crime, identifying other beneficiaries and recovering documentary and digital evidence linked to the fraudulent ITC network, officials said.
The company could not be contacted immediately for a comment on the ED action.
