NEW DELHI: The Enforcement Directorate (ED) has filed a prosecution complaint in a major money laundering case linked to a fake Input Tax Credit (ITC) racket worth over Rs 116 crore, exposing an elaborate network of shell companies and fraudulent transactions.
Investigators are tracing approvals and digital trails, uncovering fake invoices at the heart of the scam. Many documents show credits were claimed where no goods or services existed. Electronic filings were used as camouflage, with money quickly moving across accounts before detection. Ledgers were either wiped clean or altered to hide evidence.
The probe follows a report from the ED’s Itanagar team, connected to an older inquiry in Assam by Guwahati-based economic crime investigators. Tax authorities had flagged several businesses using false bills to claim ITC, moving credits around without any actual deliveries.
Some companies existed only on paper. Shree Ram Enterprises was identified for generating massive false tax credits, which were then shuffled across names like Amit Traders to create the illusion of legitimate trade. Many firms had no offices, employees, or operations—yet large payments appeared, masking the scam’s origins.
Investigators revealed that roughly Rs 51 crore moved through corporate accounts using fake invoices as cover. Some entities acted as central hubs, enabling beneficiary firms to use fraudulent credits—one reportedly offsetting over Rs 7 crore of tax liabilities.
So far, property worth
Rs 3.30 crore linked to the illegal operation has been temporarily seized. Authorities continue to track additional assets and identify all parties who benefited.