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- ED conducted raids in Arunachal Pradesh, Haryana, Delhi, Tamil Nadu, and Telangana in connection with a suspected Rs 650 crore fake GST Input Tax Credit scam.
- The investigation, led by the ED’s Guwahati office, is being carried out under the Prevention of Money Laundering Act (PMLA).
- Officials allege that shell companies fraudulently claimed ITC without genuine business transactions, with the probe likely to lead to asset seizures and possible arrests.
The Enforcement Directorate (ED) on Thursday carried out raids across several states in connection with a suspected fake Input Tax Credit (ITC) scam worth around Rs 650 crore. The searches were conducted under provisions of the Prevention of Money Laundering Act (PMLA) and were coordinated by the agency’s Guwahati office.
Officials said the raids spanned multiple locations in Arunachal Pradesh, Haryana, Delhi, Tamil Nadu, and Telangana. The case involves allegations of fraudulently claiming GST input tax credits, a benefit meant for businesses to offset the taxes paid on inputs, but which investigators believe were generated without genuine transactions.
The ED’s action is part of a larger crackdown on GST fraud and money laundering, as fake ITC scams have emerged as a recurring challenge for tax authorities. Such cases often involve complex networks of shell companies operating across state lines to siphon off government revenue.
Under the PMLA, the ED is empowered to seize property, track financial transactions, and prosecute individuals or entities found to be laundering money or evading taxes through fraudulent methods. The ongoing investigation may lead to further arrests and attachment of assets linked to the case.
The large scale of the operation reflects the seriousness of the alleged fraud and highlights the government’s growing focus on tackling financial crimes that undermine the tax system.
