The Enforcement Directorate (ED) has launched a multi-city crackdown in Gujarat, conducting searches in connection with a money laundering case linked to a significant GST fraud. The raids, which targeted over 23 premises in cities like Rajkot, Junagadh, Ahmedabad, Bhavnagar, and Veraval, followed the arrest of eight individuals, including a prominent journalist, by the Gujarat Police.
The journalist, Mahesh Langa, who is employed by The Hindu newspaper, has been implicated in the case and his premises were also subject to the ED’s investigation. The money laundering case originates from an FIR filed by the Ahmedabad Police Crime Branch, stemming from a complaint by the Central GST authorities. The complaint alleged a complex scam involving shell firms established to defraud the government through bogus input tax credits and fraudulent transactions.
Langa’s arrest came after the Central GST authorities uncovered suspicious transactions involving bogus firms allegedly floated in the name of his wife and father. These firms were reportedly created using forged documents. Following the registration of the FIR, the Ahmedabad Crime Branch and Gujarat’s Economic Offences Wing conducted coordinated raids across 14 locations in the state, including cities like Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar.
The investigation revealed a sophisticated network of over 200 fraudulently created firms operating across the country. These firms allegedly worked in a coordinated manner to defraud the government exchequer by fraudulently claiming input tax credits using forged documents and identities. The scale of the operation highlights the serious nature of the tax evasion scheme and the potential for significant financial loss to the government.