In a case relating to VAT refund scam, the Enforcement Directorate ( ED ) last day filed a complaint against a Ludhiana-based businessman, Ramesh Mehan, proprietor of York International, Rajeev Mehan, Raman Garg, and others in the special court under the Prevention of Money Laundering Act (PMLA) in Mohali.
Earlier, an FIR was lodged on the basis of which the ED had registered an ECIR on December 6, 2013.
During the course of the investigation, the department found that VAT refund worth Rs 74 lakh was taken by York International in lieu of exports to Bangladesh. However, on inquiry, all exports were found to be forged and fabricated. Of the total VAT refund received, Rajeev diverted Rs 44 lakh to Jaldhara Cotspin, of which Garg was the director.
The rest of the amount was laundered by Rajeev from various accounts in the name of his employees or family members or firms controlled by them to his company Amar Exports.
The funds were diverted to accounts of various family members of Garg and companies like Jaldhara Fibres, Jaldhara Exports, Chetan Exports, and MA Exports, all controlled by Garg or his family members.
Further, funds were siphoned off by business transactions from these firms. The ED had already attached two properties and two bank accounts worth Rs 74 lakh. Garg and Rajeev have already been charge-sheeted in two more fraud cases of Rs 2.7 crore by the ED.
