The Enforcement Directorate has conducted fresh searches in connection to a GST fraud case registered in Gujarat earlier this month, as per a release issued by the probing agency on Tuesday.
The searches, conducted by ED's Ahmedabad zonal office, were carried out at seven locations in Ahmedabad, Surat and Bhavnagar, the agency said. The searches were linked to the money laundering case against Dhruvi Enterprises and other shell entities—which are at the centre of the GST fraud detected earlier this month.
The searches were aimed at uncovering the "larger conspiracy involved", said the ED, which previously conducted searches at 23 locations in Gujarat in connection to the case.
There is a possibility of a multi-agency investigation being launched as the Central Bureau of Investment could also join the probe, sources said.
On Oct. 7, the Ahmedabad Crime Branch had filed FIR in the case based on the complaint received from the Directorate General of GST Intelligence.
The complaint pertained to the "creation of more than 200 shell entities by a group of organised criminals in order to fraudulently receive and pass-on the Input Tax Credit (ITC) at the strength of bogus invoices, without supply of any goods or services", the release stated.
Mahesh Langa Named
The release issued by ED names Mahesh Langa, as the senior journalist has been linked to one of the shell entities allegedly involved in the GST fraud case. Langa, it claimed, was found to be controlling DA Enterprises, which is one of the 12 entities that allegedly dealt with Dhruvi Enterprises.
"...Dhruvi Enterprises was created by certain individuals based on fake documents and obtained GST registration. Later this entity has raised invoices in the name of 12 different entities including M/s DA Enterprises, who availed fraudulent Input Tax Credit (ITC) from GST Department," the release said.
"During investigation, it has come to notice that one, Mahesh Langa was controlling the firm M/s DA Enterprises, from whose premises 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," the ED said, adding that further probe is underway.
Langa, a senior assistant editor at The Hindu, is currently placed under judicial custody at Sabarmati Central Jail. He was held earlier this month, after the GST fraud case was registered by the crime branch. On Oct. 23, a second FIR was filed against him in connection to the alleged unauthorised possession of a document of the Gujarat Maritime Board.
On Tuesday, a third FIR was filed against Langa for allegedly defrauding a businessman of Rs 28 lakh. The complainant, Pranav Shah, claimed that he had transferred Rs 23 lakh to the accused for "some advertisement work", and also paid Rs 5 lakh for a "lavish party" which Langa had thrown, Ahmedabad Police Commissioner GS Malik said in a press briefing.
Shah has alleged that Langa neither completed the work for which he was paid the money, nor has he returned the amount to him, the top police official said.
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