GST Fraud Case: ED Raids 23 Locations in Gujarat

The Enforcement Directorate (ED) raided 23 cities in Gujarat on Thursday in connection with a corruption case linked to GST "fraud".

Over 100 officials carried out raids in Ahmedabad, Bhavnagar, Junagadh, Veraval, Rajkot, Surat, and Kodinar.

Several individuals, including a prominent journalist from Gujarat, were arrested in connection with the case.

Just a week after the Ahmedabad Crime Detection Branch arrested several individuals, including journalist Mahesh Langa, in connection with the GST fraud case, the Enforcement Directorate (ED) has stepped in to probe further by registering a money laundering case.

The investigation revealed the involvement of more than 200 fraudulent firms nationwide, all orchestrated to evade taxes using fake identities and documents.

This money laundering case originates from an FIR filed by the Ahmedabad Police Crime Branch following a complaint by Central GST authorities.

Langa, along with seven others, was arrested after authorities uncovered suspicious transactions linked to shell companies registered under the names of his wife and father using forged documents.

Following the initial FIR, Gujarat's Crime Branch and Economic Offences Wing conducted raids at 14 locations across the state, including Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar, intensifying the crackdown on this nationwide tax evasion scheme.

The Directorate General of GST Intelligence (DGGI) had uncovered fraudulent billing practices tied to Dhruvi Enterprise, an alleged shell company.

The DGGI's probe revealed that Dhruvi Enterprise secured a GST registration in March 2023 using a forged rental agreement. The tax department later cancelled this registration, leading to a deeper investigation into the firm’s operations.

Dhruvi Enterprise is at the centre of the GST fraud case, which is estimated to be worth Rs 50,000 crore.

Crime branch officials said that documents belonging to Haresh Makwana, a daily wage worker from Gadhada in Bhavnagar, were fraudulently used to establish Dhruvi Enterprise.