Ludhiana: Vat Refund Scam

The case dates back to 2012-13 when the ED claimed to have unearthed VAT refund scam worth Rs 1.14 crore and the accused allegedly duped the government using forged documents.

By: Express News Service | Ludhiana | Published:October 12, 2017 3:07 am

A TEAM of officials from Enforcement Directorate (ED), Jalandhar, Wednesday carried out a raid at the residence of one of the prime accused in the alleged Rs 1.14 crore VAT refund scam in Ludhiana. The inspection was done at the residence of Raman Garg at Aggar Nagar, Block-A of Ludhiana on Ferozepur Road. The case dates back to 2012-13 when the ED claimed to have unearthed VAT refund scam worth Rs 1.14 crore and the accused allegedly duped the government using forged documents.

It was found that Raman Garg, of M/S Jaldhara Exports of New Moti Nagar in Ludhiana, along with Rajeev Mehan from M/S Shreyas International, submitted forged documents and got Rs 1.14 crore as VAT refund. They claimed to have exported ready-made garments worth Rs 33.36 crore to Bangladesh in 2012 through West Bengal port. Later, it was found that no such export was done to Bangladesh and the accused duped the government of Rs 1.14 crore.

Of this amount, Rs 67.5 lakh were diverted to M/S Jaldhara Cotspin owned by Garg while Rs 47.5 lakh was allegedly used by Mehan to repay his loans and he diverted pending sum to his company, M/S Shreyas International.

ED found that the documents submitted by the accused had wrong names of custom officials that did not match with their records. It was also found that the dates of the consignments being sent and received in the forged documents were illogical considering traveling time between India and Bangladesh through seaports.

The Ludhiana police booked Garg, Mehan and their accomplices under the sections 420 (cheating), 465 (forgery), 467 (forgery for valuable security), 468 (forging for purpose of cheating), 469 (forging for purpose of harming reputation) and 471 (Using as genuine a forged document) of IPC at division number 5 police station on November 14, 2013.

ED has also attached some of their properties a few months ago.

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