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Thursday, May 06, 2021

Mumbai: Trader held for wrongly claiming duty drawback, IGST refund

The five companies that have come under the DRI scanner include Enigma Blues Overseas, Rohan Designs, Ridgewood Industries Pvt Ltd, Enigma Ventures Pvt Ltd and Enigma Fusion Texprint Pvt Ltd.

By: Express News Service | Mumbai |
April 11, 2021 7:15:14 pm
A forensic audit of the firm by the bank alleged round tripping and money laundering by Juneja and other promoters of the firm.

The Directorate of Revenue Intelligence (DRI) has arrested Mumbai-based textile businessman Sanjay Juneja for wrongly claiming duty drawback and integrated goods and services tax (IGST) refund on overvalued exports of Rs 300 crore through five companies.

Juneja, according to the DRI, allegedly claimed duty drawback alone of Rs 3 crore between 2008 and 2019 and exported goods, using multiple importer exporter codes (IECs) by “making false declarations in the shipping bills under Section 50 of the Customs Act, 1962”.

The five companies that have come under the DRI scanner include Enigma Blues Overseas, Rohan Designs, Ridgewood Industries Pvt Ltd, Enigma Ventures Pvt Ltd and Enigma Fusion Texprint Pvt Ltd.

In November 2020, Juneja was arrested by the Central Bureau of Investigation (CBI) for defrauding the Bandra-branch of the Union Bank of India of Rs 16 crore.

According to the CBI, the bank has classified Juneja’s firm Enigma Fusion Texprint as a “fraud account” after it defaulted on loan repayments of over Rs 16 crore.

A forensic audit of the firm by the bank alleged round tripping and money laundering by Juneja and other promoters of the firm.

According to the audit, the firms have allegedly diverted Rs 15 crore. The audit has found irregular related party transactions, falsification of documents and bogus sales and purchase transactions.

The audit report said a majority of the “business transactions” of Enigma Fusion Texprint was not established and were “doubtful”. The forensic auditor has alleged round tripping of at least Rs 6 crore by the firm in 2015-16. The company was also not registered with the sales tax department in Maharashtra, said the auditor.

Juneja has also come under the scanner of the income tax department and the good and services tax department for multiple violations.

A local court has remanded Juneja in judicial custody till April 23.

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