Tax Fraud: The Enforcement Directorate (ED), Chandigarh Zonal Office, conducted search operations under the Prevention of Money Laundering Act (PMLA), 2002, at 14 locations across Haryana and Punjab on July 9, 2024. These searches targeted the business and residential premises of three officers from the Haryana Excise and Taxation Department and syndicate members Mahesh Bansal, Padam Bansal, Amit Bansal, Monil Bansal, Rishi Gupta, Harish Biyani, and others.
Bogus Firms and Tax Fraud
The syndicate members allegedly incorporated bogus firms to falsely claim interstate sales of taxable commodities without any actual movement of goods. The investigation by the ED was initiated based on multiple FIRs filed by the Haryana Police in various districts. These FIRs detailed the fraudulent claim of input tax credits and the acquisition of fraudulent refunds in connivance with the Excise and Taxation Department officers, causing a substantial loss to the public exchequer.
Conspiratorial Activities
The investigation revealed that these bogus firms were used to claim sales at a concessional tax rate against “C” forms, leading to false input tax credit claims and fraudulent refunds. The illicitly obtained refunds were then withdrawn in cash and used to acquire movable and immovable properties worth several crores.
Results of Search Operations
The search operations led to the recovery and seizure of digital devices, incriminating documents, property documents worth over ₹40 crore, bank lockers, DMAT accounts, and unaccounted cash amounting to ₹16.38 lakh. The ED’s actions have exposed a significant network of tax fraud and corruption, highlighting the ongoing efforts to combat financial crimes and protect public funds.
