ED Attaches Properties Worth Rs 17.16 Crore In Haryana VAT Scam Case

(MENAFN- IANS) New Delhi, Dec 24 (IANS) The Enforcement Directorate (ED), Chandigarh Zonal Office, has provisionally attached 37 immovable properties worth approximately Rs 17.16 crore in connection with a large-scale Value Added Tax (VAT) scam in Haryana's Sirsa district, officials said on Tuesday.

The attachment has been made under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.

According to an official press release issued on December 24, the provisional attachment order was issued against properties belonging to Padam Bansal, Mahesh Bansal and their family members.

The action follows an ED investigation based on multiple FIRs registered by the Haryana Police under various sections of the Indian Penal Code, 1860, relating to alleged fraudulent VAT refunds.

The ED stated that its probe revealed that several firms had claimed VAT refunds from the Excise and Taxation Department, Sirsa, on the basis of bogus C-Forms.

The investigation further found that a syndicate allegedly led by Padam Bansal and Mahesh Bansal, along with their associates, incorporated multiple firms in the names of poor and unsuspecting individuals. These firms were allegedly used to carry out fraudulent transactions by operating their bank accounts.

As per the ED, the firms claimed fake interstate sales using forged C-Forms and, in alleged connivance with officials of the Excise and Taxation Department, Sirsa, obtained fraudulent tax refunds amounting to around Rs 4.41 crore. The scam is estimated to have caused a total loss of approximately Rs 43.65 crore to the government exchequer.

This includes tax dues of about Rs 20.01 crore, interest of Rs 8.91 crore, penalties amounting to Rs 17.34 crore, and input tax credit of Rs 7.02 crore.

The ED further claimed that the fraudulently obtained refunds were diverted to private firm accounts controlled by the accused and were subsequently used to acquire immovable assets in their own names as well as in the names of family members.

These assets have now been attached as proceeds of crime.

Officials said further investigation is underway in relation to the FIRs registered in Sirsa and other districts of Haryana to trace additional proceeds of crime and identify the complete network of beneficiaries involved in the VAT scam.

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