The Directorate of Enforcement (ED) carried out search operations at 25 locations on 02.06.2023 in the case registered against Mohammad Ejaj Bomar & others (GST Fraud case) under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
ED searched the premises of accused persons who were involved in preparing bogus documents based on which fake GST firms were made and the entities which were used for providing bogus Input Tax Credit (ITC).
ED initiated a money laundering investigation based on FIRS registered by Bhavnagar Police for various offences punishable under various sections of IPC, 1860 against Mohammad Ejaj Bomar& others. Further, it was found that these accused persons have changed the mobile number linked to the Aadhar card of several persons promising them financial assistance under the government scheme and later on used these Aadhar for obtaining PAN and then GST registration.
As per the police charge sheet, fake invoices of more than Rs.1102 Crore involving evasion of GST of Rs. 122 Crore using 461 bogus firms were issued. The accused created fake entities through forged documents to obtain GST registration. Later on, these fake entities are passing on Input Tax Credits to beneficiaries by generating fake invoices on a commission basis. Payment for these fake invoices is made through banking channels and later on, the amount is settled in cash between the operator of the fake entity and the beneficiary.
During the course of the search action, the ED seized the incriminating documents in huge quantities such as forms for changing mobile numbers from Aadhar cards, fake bills issued from these bogus entities and digital evidence. Further cash amounting to Rs. 29 lahks has also been seized.
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