ED Raids 23 Locations in Gujarat for Major Tax Evasion Involving 200 Fake Companies

The Enforcement Directorate (ED) has now stepped into the shell company case in Gujarat, where over 200 fake companies were set up for large-scale tax evasion. ED has initiated a search operation, conducting raids at 23 locations across the state, including cities like Ahmedabad, Bhavnagar, Junagadh, Veraval, Rajkot, Surat, and Kodinar.

Arrests and Central Agency Involvement

Several arrests have already been made, including prominent individuals like journalist Mahesh Langa. After raids by Ahmedabad Police, the central agency has intensified its involvement. ED has filed a fresh complaint and begun carrying out raids.

BJP MLA’s Son Also Questioned

Based on information provided by the Directorate General of Goods and Services Tax Intelligence (DGGI) to the Ahmedabad Crime Branch, a total of 14 raids were conducted across cities like Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar. Over 33 individuals involved in creating 12 bogus entities have been detained. Among them, Ajay Barad, son of BJP MLA Bhogwan Barad, and journalist Mahesh Langa were also questioned. Preliminary investigations reveal a scam involving over 200 fake entities across the country, collectively responsible for a massive input tax credit fraud amounting to crores.

Nationwide Raids by Crime Branch, EOW, and SOG

Following the complaint filed by Central GST with the Crime Branch, simultaneous raids were conducted by teams from the Crime Branch, Economic Offences Wing (EOW), and Special Operations Group (SOG) across 14 locations. These companies had systematically operated nationwide, using fake billing and fraudulent documentation to gain substantial tax credits, causing significant losses to the public exchequer.

Criminal Syndicate Involvement

Investigations have revealed that fake identities and forged documents were used to set up these companies. The entities have been involved in criminal conspiracies, using fraudulent billing and misrepresentation of documents to evade taxes and inflict financial damage on the nation. Legal proceedings are underway, and further investigation is being conducted.

DGGI Files Initial Complaint

Earlier, on October 7, Director Himanshu Joshi of the Directorate General of Goods and Services Tax Intelligence (DGGI) filed a complaint with the Ahmedabad Crime Branch, exposing a bogus company registered as Dhruvi Enterprises. This company, along with over 200 other fake entities across the country, had engaged in a large-scale scam to claim input tax credits using thousands of fraudulent bills.

Statewide Raids to Uncover Tax Evasion

Based on this complaint, raids were carried out statewide by the Ahmedabad Crime Branch, SOG, and EOW. In the initial phase of the investigation, scams worth over Rs. 200 crores have already been identified, with the possibility of further fraudulent entities and individuals being exposed.

Gujarat’s Tax Evasion Crosses Rs. 50,000 Crores

While Gujarat ranks among the top states in GST collection, it also leads in fraudulent tax activities. The ongoing investigation has revealed that the scale of the GST billing scam in Gujarat has exceeded Rs. 50,000 crores, with multiple cases still under scrutiny.

Details of Shell Companies and Their Operators

• Dhruvi Enterprises
• Arham Steel (Nimesh Mahendra Vora, Hetalben Vora)
• Om Construction (Rajendra Singh Sarvaiya, Vanraj Singh Sarvaiya, Brijraj Singh Sarvaiya, Ritiviraj Singh)
• Shri Kankeshwari Enterprises (Kalubhai Vagh, Prafulbhai Vaja, Manan Vaja, Jayesh Vaja, Vijay Vagh)
• Raj Infra (Ratnadeep Singh Dodiya, Jayesh Kumar Sutaria, Arvindbhai Sutaria)
• Haresh Construction Company (Nilesh Nashit, Jyotishbhai Gondalia, Prabhaben Gondalia)
• D.A. Enterprises (Manoj Ramabhai Langa, Vinubhai Natubhai Patel)
• Ithiraj Construction Pvt. Ltd. (Nilesh Nashit, Jyotish Gondalia, Prabhaben Gondalia)
• B.J. Odedra (Bhagirath Bhojabhai Odedra, Keshubhai Jesabhai Odedra, Bhojabhai Odedra, Abhabhai Odedra)
• R.M. Dasa Infrastructure Pvt. Ltd. (Nathbhai Merubhai Dasa, Ranmalbhai Merubhai Dasa)
• Aryan Associates (Ajay Bhogwanbhai Barad, Vijay Kalabhai Barad, Ramesh Kalabhai Barad)
• Prithvi Builders (Paresh Pradipbhai Dodhiya)