ED Seizes Rs 75 Lakh Property In Karnataka Handicraft Funds Misappropriation Case

Bengaluru: The Enforcement Directorate (ED) on Thursday seized property worth Rs. 75 lakh of Velohar Infra Pvt Ltd in a case involving alleged misappropriation of Karnataka State Handicraft Development Corporation Limited (KSHDCL) funds, an official said. 

In a post on X, ED wrote,“ED, Bengaluru has provisionally attached immovable property to the extent of Rs. 75 Lakh of M/s Velohar Infra Private Limited, under PMLA, 2002, in a case related to misappropriating Government funds from the accounts of M/s Karnataka State Handicraft Development Corporation Limited (KSHDCL).”

Earlier today, ED launched search operations at multiple locations in Arunachal Pradesh, Haryana, Delhi, Tamil Nadu and Telangana in connection with a massive fake Input Tax Credit (ITC) case of around Rs 650 crore, officials said.

ED's Guwahati unit is conducting the operation in close coordination with state police forces.

The case pertains to firms allegedly engaged in generating and availing fraudulent ITC through fake invoices without the actual supply of goods or services. Such fraudulent claims not only cause losses to the exchequer but are often linked to money laundering and shell company operations.

The ED's searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), following information shared by the Goods and Services Tax (GST) authorities.

Fake ITC scams have been a major concern for tax enforcement agencies in recent years. In several past cases, fraudsters floated multiple shell companies to pass on tax credits illegally, creating a parallel chain of bogus transactions.

Officials said the ongoing action is aimed at unearthing the entire network behind the scam and identifying the end beneficiaries.

Last month, the federal agency had also carried out search operations at 12 locations spread across Jharkhand, West Bengal, and Maharashtra as part of its ongoing probe into a similar massive fake ITC scam involving Rs 750 crore. The case was linked to a fraudulent network involving shell companies and unauthorised financial channels used to claim and launder fake ITC. 

(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed)

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