New Delhi [India], October 17 : The Enforcement Directorate (ED) has broadened its ambit of investigation against an organized web of 200 fake and shell entities being operated by the accused persons in order to fraudulently receive and pass on fraudulent input tax credit to the tune of crores of rupees to ineligible firms in a money laundering case registered against Dhruvi Enterprises and others in Goods and Services Tax (GST) fraud matter.
The analysis of the ED in the case further suggested that the common identifiers such as PAN, mobile numbers, email ids of 34 GST registrations were further involved in registration and creation of another 186 GST Registrations (50 registrations in Gujarat).
The inputs comes at a time when the ED's Ahmedabad unit carried out searches at a total of 23 premises in seven cities of Gujarat located at Ahmedabad, Bhavnagar, Junagarh, Veraval, Rajkot, Surat and Kodinar.
The instant case has been registered by Ahmedabad crime branch of Gujarat police on receipt of a reference from Directorate General of GST Intelligence (DGGI) for thorough investigation into creation of more than 200 shell entities by a group of organized criminals in order to fraudulently receive and pass on the input tax credit at the strength of Bogus invoices without supply of any goods or services.
In the instant FIR, the complaint sent by DGGI to the Gujarat Police reveals that they conducted the analysis of common identifiers (Mobile No., Email Id and PAN Nos.) used in six registrations for the PAN number of a shell entity, namely, Dhruvi Enterprises, which suggested that these common identifiers were primarily linked with creation and registration of 34 GST registrations out of which 11 firms were registered in Gujarat.
As per the ED, all these primary 36 GST registrations as well as 186 additional registrations are cancelled as of date.
"Thus, it appears that an organized web of fake and shell entities is being operated by the accused persons involving more than 200 such firms, thus, passing on the fraudulent input tax credit to the tune of crores of rupees to ineligible firms," said the ED.
As the FIR was lodged for the offence of fraud and forgery, the same being scheduled offences under Prevention of Money Laundering Act, 2002, the ED took up the instant matter for investigation.