ED conducts Multi-City Raids in Gujarat in GST Fraud Case

The Enforcement Directorate (ED) conducted multi-city raids in Gujarat on Thursday in connection with a money laundering case involving GST fraud in which eight people, including a journalist, were recently arrested by state police, according to government sources.

According to authorities, the central agency raided approximately 23 sites in Rajkot, Junagadh, Ahmedabad, Bhavnagar, and Veraval after a complaint was filed under the Prevention of Money Laundering Act (PMLA). Premises linked to held journalist Mahesh Langa, who writes for The Hindu newspapers, were also covered.

The money laundering case arises from an FIR filed by the Ahmedabad Police Crime Branch.

The local Crime Branch filed an FIR against many individuals and businesses after receiving a report from the Central GST about an alleged scam involving fake companies set up to defraud the government through fake input tax credits and fraudulent transactions.

Langa, along with seven others, was detained after the Central GST discovered certain unusual activities in fake organizations registered in the names of his wife and father with fraudulent documents. Following the filing of the FIR, the Crime Branch and Gujarat’s Economic Offences Wing raided 14 locations throughout the state, including Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar.

According to the Crime Branch, over 200 fraudulently established firms worked across the country in a coordinated manner to defraud the government exchequer by obtaining fake input tax credits, and forged documents and identities were utilized to establish these firms for tax evasion.