THE ENFORCEMENT Directorate (ED) has attached properties worth Rs 1.14 crore of a Ludhiana-based industrialist in the VAT refund fraud here on Wednesday. According to orders passed by the ED, a company registered in the name of Rajeev Mehan’s employee, had fraudulently obtained a VAT refund of Rs 1,14,61,042 on the basis of forged and fabricated documents from the Excise and Taxation Department, Ludhiana. The properties of Rajeev Mehan and his family have been attached.
Mehan, who was the owner of Jaldhara Export at New Moti Nagar in Ludhiana, had shown that it had bought apparels worth Rs 30.19 crore and later exported it for Rs 33.36 crore to Bangladesh through a West Bengal port in 2012. The firm duped the state government of Rs 1.14 crore by obtaining VAT refund with forged documents.
Out of the said VAT refund amounting to Rs 1.14 crore, Rs 67.5 lakh was diverted to Jaldhara Cotspin Pvt Ltd (which was siphoned off by transferring it to different accounts of the companies owned by relatives of directors and then cash withdrawals) while the remaining Rs 47.5 lakh was utilised by Mehan by diverting the money to his company, Sheryas International, to repay loan.
Speaking to Chandigarh Newsline, senior official of the ED Jalandhar Branch, said, “We have attached the properties of Rajeev Mehan and a few members of his family. The properties being attached are residential buildings – two of the residential houses in Ludhiana and one in Dera Bassi will be attached.” The properties to be attached are two houses on Pakhowal Road and at Aggar Nagar in Ludhiana and a flat in Dera Bassi.
The case which had come to light in 2013 when the excise and taxation department had unearthed a VAT refund fraud that had caused a loss of Rs 1.56 crore to the state government. In the report submitted by the customs department, it was mentioned that no shipment was exported through West Bengal by Jaldhara Export as claimed in the documents.