Quick Summary
The Enforcement Directorate (ED) on Friday said its preliminary investigation into a multi-crore, pan-India fake ITC racket has revealed that several multinational corporations (MNCs) benefited from these fraudulent transactions. The ED's Itanagar office, along with its teams across Delhi, Haryana, Tamil Nadu and Telangana, conducted searches on about 10 premises on Thursday as part of the probe registered under the Prevention of Money Laundering Act (PMLA). The searches led to freezing of bank
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FAQ :
The ED has uncovered a multi-crore, pan-India fake Input Tax Credit (ITC) racket.
Several multinational corporations (MNCs) are under investigation for benefiting from these fraudulent transactions.
The ED has conducted searches, frozen bank accounts, seized immovable property documents, and recovered incriminating records as part of the probe.
The scam involved the widespread use of bogus invoicing, fake e-way bills, and layered fund transfers to siphon off illicit gains.
Yes, proprietors of Rainbow Enterprises and A K Enterprises admitted to availing fake ITC, and Tanor Engineering was found to have fraudulently claimed ITC. Vinardh Automobiles and Jai Shree Balaji Traders/Trading Co. also showed fictitious turnovers.
The findings highlight a systemic challenge in curbing GST frauds through dummy firms and fabricated invoices, with large MNCs benefiting from these fraudulent credits within supply chains.
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