ED attached Bank Balance of Rs 4.05 crore in Vinayak Nirman Case for alleged Forgery and Tax Evasion

The Directorate of Enforcement (ED), Allahabad sub-zonal office, has provisionally attached a bank balance of Rs.4.05 crore under the Prevention of Money Laundering Act, 2002, in the case of Vinayak Nirman Private Limited.

The ED launched an inquiry into this matter based on an FIR filed by Uttar Pradesh Police at Cantonment, Varuna Commissionerate, Varanasi, for crimes under sections forgery and cheating.

The said FIR was launched based on evidence provided by the Income Tax Department, in which it was alleged that Vinayak Nirman Pvt Ltd claimed a deduction under section BOIB of the Income Tax Act, 1961, using a fraudulent project completion certificate.

The Joint Secretary of Varanasi Development Authority granted the completion certificate for Vinayak Nirman Private Limited’s project, as claimed by the builder business. However, it was faked and fraudulently exploited by the corporation as genuine in order to claim the aforementioned deduction benefit.

The CBDT had shared the same material with the Directorate of Enforcement, claiming that Vinayak Nirman Private had obtained a false deduction under section 8018 (10) through the use of forged documents.

Because the scheduled offence was engaged in the case and significant proceeds of crime were created, this Directorate initiated an inquiry under the terms of the PMLA, 2002.

During the investigation, it was discovered that Vinayak Nirman Private Limited fabricated project completion certificates/documents for its residential project, “The Varuna Garden,” allegedly issued by the Varanasi Development Authority, in order to claim an undue deduction under section 8018 (10) of the Income Tax Act, 1961, resulting in a significant loss to the government exchequer.