DGGI Uncovers Rs.200 Crore Tax Scam in Gujarat
Ahmedabad : In a sweeping crackdown on tax evasion, the Directorate General of Goods and Services Tax Intelligence (DGGI) uncovered a staggering ₹200 crore tax fraud during raids on scrap dealers in...
Ahmedabad : In a sweeping crackdown on tax evasion, the Directorate General of Goods and Services Tax Intelligence (DGGI) uncovered a staggering ₹200 crore tax fraud during raids on scrap dealers in Ahmedabad and oil businesses in Jamnagar and Rajkot. The operation, conducted across more than 25 locations, has exposed a network of bogus transactions and illegal practices, with investigators expecting the scam’s scale to grow as inquiries continue.
Fraudulent Operations in Ahmedabad
In Ahmedabad’s Odhav area, the spotlight fell on Ashint Enterprise, whose owner registered nine companies under his name and five under his wife’s name. Raids at their premises revealed incriminating documents tied to massive tax evasion. The DGGI has initiated an extensive probe into the network of businessmen associated with Ashint Enterprise to uncover the full extent of the fraudulent activities.
Jamnagar and Rajkot: Oil Traders Under Scrutiny
In Jamnagar, the DGGI raided dealers and distributors involved in importing base oil. These traders declared the imports as high-speed diesel to evade taxes and resold the oil for industrial use, resulting in tax fraud worth crores of rupees. Similarly, in Rajkot, base oil traders were found using bogus purchase and sales documents to claim wrongful input tax credits. Raids on their offices and warehouses seized digital devices and suspicious documents, further cementing the scale of the scam.
Suspicious Links to Prominent Figures
A notable aspect of the investigation connects the fraud to Ashapura Enterprise in Gondal, Rajkot, owned by the brother of former BJP MLA Jayrajsinh Jadeja. Earlier raids at this business revealed another large-scale tax scam related to base oil imports. The DGGI’s findings suggest a wider network of individuals and businesses involved in these fraudulent activities.
Nationwide Implications
The DGGI’s investigation into these scams highlights the growing menace of GST-related frauds involving input tax credits and false documentation. Officers seized a trove of bogus documents, digital devices, and financial records, all pointing toward a meticulously orchestrated scheme to dodge taxes. As the investigation unfolds, the authorities anticipate uncovering additional players and expanding the scale of the scam beyond the initial ₹200 crore estimate.
