Ahmedabad Journalist Arrested in Massive Fake ITC

ED to probe GST case

A day after the Ahmedabad Police arrested six individuals, including journalist Mahesh Langa, in connection with a Goods and Services Tax (GST) case, the Enforcement Directorate (ED) is set to initiate a money laundering investigation. Sources familiar with the situation stated that the agency aims to explore a “larger conspiracy” in the case. The ED has already gathered information on the irregularities and is expected to file an ECIR (Enforcement Case Information Report), which is their version of a first information report (FIR), later this week.

An unnamed ED officer revealed that the Ahmedabad Crime Branch’s case involves extensive irregularities in claiming and passing on fake input tax credit (ITC) through fraudulent invoices by over 220 companies nationwide. These companies, established using forged identities and documents, have caused significant financial losses to the exchequer, amounting to crores. The ED’s involvement in the investigation suggests that further raids and potential property seizures of the suspects could take place in the coming days.

Input tax credit (ITC) refers to the tax a business pays on purchases of goods or services used for business purposes.

On Tuesday, Ahmedabad Police conducted raids at 14 locations across Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar. All six accused were remanded to 10 days of police custody by a Gujarat court on Wednesday. Following the arrest of journalist Mahesh Langa, Ajit Rajian, deputy commissioner of police at the Ahmedabad Crime Branch, stated that their investigation revealed Langa’s wife was the promoter of a company suspected of issuing fake bills using forged documents and diverting funds.

According to a second official, the Directorate General of GST Intelligence (DGGI) has prioritized identifying and arresting the masterminds behind fake Input Tax Credit (ITC) schemes this year, with the goal of dismantling syndicates operating nationwide.