Lucknow: The Enforcement Directorate (ED) on Monday carried out searches at multiple premises in Uttar Pradesh and Haryana as part of a money‑laundering investigation connected to a Goods and Services Tax (GST) fraud, officials said.
Scope of the raids
Officials said the searches were conducted under the provisions of the Prevention of Money‑Laundering Act (PMLA). In Uttar Pradesh, the agency targeted a total of nine premises located in Muzaffarnagar and Ghaziabad. Additional locations in Haryana’s Faridabad were also searched, they added.
The probe centres on a company identified as Jambudwip Exports and Imports. The ED alleged that the firm was involved in the fraudulent availment of Input Tax Credit (ITC) by generating and passing bogus credits through fabricated invoices and e‑way bills without any actual movement of goods.
Allegations and financial impact
The central agency has alleged that the company used circular transactions, multiple layers of fund transfers and cash withdrawals routed through several bogus or non‑existent entities to conceal the proceeds. According to GST authorities, such operations resulted in the fraudulent availing of ITC amounting to ₹9.63 crore, causing a wrongful loss to the government exchequer.
- Investigative provision used: Prevention of Money‑Laundering Act (PMLA)
- Primary allegation: bogus Input Tax Credit through fabricated invoices and e‑way bills
- Company named in the probe: Jambudwip Exports and Imports
- Alleged fiscal impact: ₹9.63 crore of fraudulent ITC
Purpose of searches
ED said searches were aimed at locating proceeds of crime, identifying additional beneficiaries and to seize documentary and digital evidence related to the alleged ITC network. The agency typically seeks books of accounts, electronic devices, bank records and other material that can establish the flow of funds and linkages among entities.
| District/City | Premises searched |
|---|---|
| Muzaffarnagar & Ghaziabad (UP) | Nine premises (combined) |
| Faridabad (Haryana) | Searches conducted (number not specified) |
Investigation status and responses
The company named in the FIR could not be contacted immediately for comment on the ED action, officials said. The ED did not release additional details on whether any arrests were made or if provisional attachment of properties had been initiated.
Such GST‑related probes often follow referrals from the tax authorities after audit or field verification indicates misuse of the Input Tax Credit mechanism. When tax authorities establish fraudulent availment of ITC, the matter is frequently taken up by the ED to investigate predicate offences and trace laundering of the proceeds.
Local implications and enforcement context
For Uttar Pradesh, where commercial activity and supply chains are extensive across districts, cases of alleged bogus invoicing and fake ITC impact both revenue collection and the credibility of compliance mechanisms. If substantiated, the ED’s findings can lead to prosecution under PMLA and recovery measures to recoup the loss to the exchequer.
Tax and enforcement agencies have in recent years stepped up scrutiny of e‑commerce, trading firms and logistics chains, citing increased misuse of the ITC system through paper transactions and shell entities. The present action underlines continuing central agency focus on such networks that allegedly facilitate tax evasion and money‑laundering.
The ED said its searches were part of a continuing investigation; further updates are expected as the agency examines seized material and bank records to map the alleged fraudulent network.
Abhishek Tripathi is the Uttar Pradesh correspondent reporting from Lucknow.
