ED Cracks Down on Fraud with Seizure and Searches in Nationwide Operations

The Enforcement Directorate (ED) seized property valued at Rs 75 lakh from Velohar Infra Pvt Ltd on Thursday, over allegations of misappropriating funds from the Karnataka State Handicraft Development Corporation Limited (KSHDCL). The move comes amidst a larger effort to target financial misconduct across India.

In a separate but related effort, the ED initiated search operations across multiple states, including Arunachal Pradesh, Haryana, Delhi, Tamil Nadu, and Telangana, as part of a probe into a massive Rs 650 crore fake Input Tax Credit (ITC) scam. Sources indicate that the Guwahati unit of ED is spearheading the operations, working closely with local law enforcement.

The investigation focuses on companies accused of generating fraudulent ITC claims through fake invoices. These scams have not only resulted in significant losses to the national exchequer but are often intertwined with money laundering activities and the use of shell companies to mask illicit financial channels.

These fraudulent operations have raised significant concern among tax enforcement agencies. ED's recent activity is a continuation of their ongoing mission to dismantle these illegitimate networks and trace the proceeds to their ultimate beneficiaries.

Today's actions follow last month's efforts when the ED executed search operations at 12 locations in Jharkhand, West Bengal, and Maharashtra, uncovering a similar fake ITC fraud valued at Rs 750 crore. These networks involved shell companies and unauthorized methods to falsify ITC claims, reinforcing the agency's resolve to crackdown on such economic offenders.

(With inputs from agencies.)