12 July 2024

The Enforcement Directorate (ED), Chandigarh Zonal Office, conducted extensive raids on July 9, 2024, at 14 locations in Haryana and Punjab. The raids were conducted under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

The targets of the raids included the business and residential premises of three officers from the Excise and Taxation Department of Haryana, along with several syndicate members. These individuals are suspected of orchestrating a scheme involving bogus firms to falsely claim interstate sales of taxable goods without any actual movement of goods.

The ED's investigation was prompted by multiple FIRs filed by the Haryana Police across various districts. These FIRs allege that the syndicate, in collusion with government officials, fraudulently claimed input tax credits and obtained illicit refunds, resulting in significant losses to the public exchequer.

According to ED officials, the syndicate members allegedly created fictitious firms to declare sales at reduced tax rates using "C" forms. This allowed them to claim undue input tax credits and secure fraudulent refunds with the help of Excise and Taxation Department officials. The funds obtained through these fraudulent activities were reportedly withdrawn in cash and used to acquire assets worth several Crore.

During the raids, the ED seized a cache of digital devices, incriminating documents, records related to immovable properties valued at over 40 Crore, bank lockers, DMAT accounts, and unaccounted cash amounting to Rs. 16.38 Lakh. The investigation is ongoing as the ED continues to gather evidence to unravel the full extent of the financial malpractices involved. For further details, authorities have requested the public to reach out directly to the ED's Chandigarh Zonal Office.

PREVENTION OF MONEY LAUNDERING ACT, 2002