ED conducts search operations against Dhruvi Enterprises in money laundering case

Ahmedabad (Gujarat) [India], October 29 (ANI): The Directorate of Enforcement (ED) conducted search operations at 7 premises located at Ahmedabad, Surat, and Bhavnagar in a money laundering case against Dhruvi Enterprises and others. The search was conducted on October 27, as per an official release.

ED initiated an investigation based on an FIR registered by Crime Branch Police. In the instant FIR, the complaint sent by the Directorate General of GST Intelligence (DGGI) to Gujarat Police revealed that one entity by the name Dhruvi Enterprises was created by certain individuals based on fake documents and obtained GST registration.

Later this entity raised invoices in the name of 12 different entities including DA Enterprises, who availed fraudulent Input Tax Credit (ITC) from the GST Department.

The instant case has been registered by the Ahmedabad Crime Branch of Gujarat Police on receipt of a complaint from DGGI against the creation of more than 200 shell entities by a group of organized criminals to fraudulently receive and pass on the Input Tax Credit (ITC) in the strength of bogus invoices, without supply of any goods or services, ED stated in an official release,

During the investigation, it has come to notice that one, Mahesh Langa was controlling the firm DA Enterprises, from whose premises a large quantum of unaccounted cash was seized by the Police authorities, and it is further gathered that various other benami transactions are suspected to have happened with shell companies.

As a consequence of the same, during the investigation, enquiries were made from statutory authorities and various statements were recorded under PMLA, 2002, which could not establish the genuineness of these transactions. Accordingly, searches were conducted at the locations of such persons or entities, to unearth larger conspiracy involved in the same.

In this case, ED Ahmedabad had previously conducted searches at 23 locations at Ahmedabad, Bhavnagar, Junagadh, Veraval, Rajkot, Surat and Kodinar, all in the state of Gujarat under PMLA, 2002, including the registered addresses of the entities availing ITC.

Further investigation is under progress.