Ahmedabad: The Directorate of Enforcement (ED), Ahmedabad Zonal Office, announced that it conducted search operations at seven premises located in Ahmedabad, Surat, and Bhavnagar, Gujarat, in a money laundering case registered against M/s Dhruvi Enterprises and others. During these search operations, carried out on 27.10.2024, incriminating documents were recovered and seized.

The case was initially registered by the Ahmedabad Crime Branch of the Gujarat Police following a complaint from the Directorate General of GST Intelligence (DGGI). The complaint highlighted the creation of over 200 shell entities by a group of organized criminals to fraudulently receive and pass on Input Tax Credit (ITC) through bogus invoices without any actual supply of goods or services.

The ED initiated its investigation based on an FIR filed by the Crime Branch Police. In this FIR, the complaint submitted by the DGGI to Gujarat Police revealed that an entity named M/s Dhruvi Enterprises was created using fake documents to obtain GST registration. This entity subsequently raised invoices on behalf of 12 different entities, including M/s DA Enterprises, which availed fraudulent ITC from the GST Department.

During the investigation, it was found that Mahesh Langa controlled M/s DA Enterprises, from whose premises a significant amount of unaccounted cash was seized by the police. Further findings suggest various other benami transactions involving shell companies. In line with these findings, enquiries were conducted with statutory authorities, and statements were recorded under the Prevention of Money Laundering Act (PMLA), 2002, though the legitimacy of these transactions could not be established. As a result, searches were carried out at the locations of relevant persons and entities to uncover the larger conspiracy.

Previously, ED Ahmedabad had conducted searches at 23 locations across Ahmedabad, Bhavnagar, Junagadh, Veraval, Rajkot, Surat, and Kodinar in Gujarat under PMLA, 2002, including the registered addresses of entities availing ITC. DeshGujarat