Haryana: ED seizes property documents, cash in bogus input tax credit claims

The money laundering case stems from multiple FIRs filed by the Haryana Police in 2020 where it was alleged that false input tax credit (ITC) was shown and refunds obtained by claimants in connivance with Excise and Taxation Department officers, causing loss to the exchequer worth crores of rupees, the agency said in a statement.

“Bogus firms were incorporated by syndicate members and the sales in these bogus firms were claimed at concessional rate of tax against “C” forms, resulting into claim of false input tax credit and ultimately getting fraudulent refunds with the help of officers of Excise and Taxation Department.

“These fraudulent refunds have been withdrawn in cash and utilised for acquisition of movable and immovable properties worth several crores of rupees, “it claimed.

The raids were conducted at the business and residential premises of three retired state government officials — former excise and taxation officer (ETO) Ashok Sukhija, former deputy excise taxation commissioners Narender Ranga and Gopi Chand Chaudhary — and “syndicate” members identified as Mahesh Bansal, Padam Bansal, Amit Bansal, Monil Bansal, Rishi Gupta, Harish Biyani.

These private persons are alleged to have incorporated bogus firms for claiming false inter-state sale of taxable commodities without any movement of goods, as per the ED.

Digital devices, “incriminating” documents including those of immovable properties worth more than Rs 40 crore, bank lockers, DMAT accounts and unaccounted cash of Rs 16.38 lakh was seized during the raids, it said.

According to rules, Form C is issued by the Haryana government against the sale of goods outside the state and a trader or business entity can avail refund by using it. It was alleged that the traders created bogus sale bills leading to loss of money to the exchequer.

From the homepage

‘Regime change’ conspiracy behind 2020 riots, Delhi Police tell SC; oppose bail to accused

RJD’s challenge in Siwan: Shahabuddin is dead. Long live Shahabuddin

‘I had money, I paid. What will poor do?’: Retired BPCL CFO’s post on bribery ordeal after daughter’s death goes viral; 2 Bengaluru cops suspended