Enforcement Directorate raids nine locations in UP and Haryana over ITC fraud

The Enforcement Directorate (ED) conducted raids at nine locations across Uttar Pradesh and Haryana, including Muzaffarnagar, Ghaziabad, and Faridabad, in connection with a fraudulent Input Tax Credit (ITC) case. The investigation, carried out under the Prevention of Money Laundering Act (PMLA), 2002, targets a suspected network involved in laundering money through bogus tax credits.

The case is linked to M/s Jambudwip Exports & Imports Ltd., which is alleged to have generated fraudulent ITC using fake invoices and e-way bills without any actual movement of goods. GST officials determined that 9.63 crore rupees in fraudulent ITC was claimed, and 10.28 crore rupees was subsequently transferred to other entities, causing a loss to the government exchequer.

Investigators found evidence of circular transactions, rapid layering of funds through multiple accounts, and the use of shell or non-existent companies to withdraw cash. The ED is currently searching for documentary and digital evidence to identify all beneficiaries and trace the proceeds of crime.