Ranchi / Jamshedpur (IANS): The Enforcement Directorate (ED) on Tuesday intensified its crackdown on a massive inter-state financial fraud, conducting extensive search operations across Jharkhand, Kolkata, and Manipur. The raids are part of an ongoing investigation into a ₹658 crore fake Input Tax Credit (ITC) scam that has allegedly drained the national exchequer through a sophisticated network of shell companies.
Jharkhand Under the Scanner
Investigators from the ED’s Itanagar unit, supported by local police, targeted several premises in Jharkhand linked to individuals and firms suspected of facilitating the fraudulent tax claims. Sources indicate that the state served as a key node for the operation of “non-existent” entities that generated bogus invoices to claim tax benefits without the actual supply of any goods or services.
The probe reveals a complex money laundering web where Jharkhand-based shell companies were reportedly used to layer illicit funds and circulate fake invoices. These activities are frequently tied to broader financial crimes, including the diversion of funds into unauthorized business sectors.
Origin of the ₹658 Crore Fraud
The money laundering case stems from an FIR registered at the Itanagar Police Station in Arunachal Pradesh. The investigation centers on:
- The Prime Suspects: Rakesh Sharma and Ashutosh Kumar Jha are named as the primary accused in a criminal conspiracy involving cheating and document forgery.
- The Fraudulent Entity: A non-existent firm, M/s Siddhi Vinayak Trade Merchants, is accused of wrongfully availing ITC worth ₹99.31 crore.
- The Network: This credit was claimed based on bogus invoices valued at a staggering ₹658.55 crore, involving at least 58 shell entities spread across multiple states, including Jharkhand.
Escalating Crackdown on Financial Crime
The ITC raids coincided with another high-profile action by the ED regarding the multi-crore coal smuggling case that bridges the Jharkhand-Bengal border. In that separate investigation, the agency summoned seven more coal traders today, bringing the total to 15.
The ED is currently focusing on tracing the final beneficiaries of the laundered money in the ITC scam. Officials stated that digital devices and incriminating documents seized during the Jharkhand raids are being analyzed to identify more local conspirators involved in this multi-state tax evasion racket.
