The Enforcement Directorate (ED) launched extensive multi-state searches on Thursday in a major money laundering probe linked to an alleged fake GST input tax credit (ITC) claim worth Rs 650 crore, official sources confirmed.
The probe agency’s Guwahati office is conducting simultaneous raids at several locations across Arunachal Pradesh, Haryana, Delhi, Tamil Nadu, and Telangana. The action is part of a rigorous investigation under the Prevention of Money Laundering Act (PMLA), targeting a large-scale GST fraud that reportedly involved bogus claims of input tax credit by certain business entities.
According to sources, the investigation uncovered a well-organized network engaged in generating and utilizing fake invoices to claim ITC fraudulently, thereby enabling these entities to reduce their tax liabilities unlawfully. The total amount involved in the alleged scam is pegged at approximately Rs 650 crore, which has attracted the scrutiny of the federal probe agency.
Officials from the ED stated that the searches aim to collect crucial evidence, including digital records, financial documents, and other materials necessary to track the flow of illicit funds and establish connections between the accused individuals and entities.
This high-profile investigation is expected to uncover significant leads regarding the modus operandi of GST-related financial crimes and potentially result in further arrests and prosecutions.
The ED’s move highlights the government’s stringent approach toward curbing GST frauds and enforcing strict compliance with anti-money laundering laws. No official statement has been issued yet regarding any arrests or seizures.
Further updates are awaited as the investigation progresses.
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