More than ₹200 crore scam in Gujarat uncovered in DGGI raids

The Directorate General of Goods and Services Tax Intelligence (DGGI) raided scrap dealers in Ahmedabad and oil businesses in Jamnagar and Rajkot and uncovered tax fraud of ₹200 crore.

DGGI conducted raids at more than 25 locations of these businesses, and the investigation for the same is still ongoing.

The total amount of the scam is expected to increase.

In Odhav, Ahmedabad, the owner of Ashint Enterprise has nine companies registered under his name and five under his wife’s name. Documents related to the tax scam from these companies have been discovered in the raids.

DGGI has now started investigating the businessmen involved with Ashint Enterprise, which operates its business in Odhav.

In Jamnagar, raids were conducted at other dealers and distributors. The owners of this group import base oil and sell it for industrial use.

During the import, they declared it as high-speed diesel, committing a tax fraud worth crores of rupees.

During the raids on scrap dealers and base oil traders in Ahmedabad and Rajkot, large amounts of bogus purchase and sales documents, digital devices, and suspicious documents related to wrongly claimed input tax credits were seized.

These documents are under investigation, but initial findings have revealed a scam worth more than ₹200 crore.

DGGI officers also raided offices, warehouses, and distributors of base oil traders in Rajkot and Jamnagar.

Previously a raid was conducted by DGGI officers, at Ashapura Enterprise, owned by the brother of former BJP MLA Jayrajsinh Jadeja in Gondal, Rajkot.

The raid uncovered a massive tax fraud related to the import of base oil. The investigation is ongoing, and more names are expected to emerge, suggesting that the network is much larger.