ED attaches properties worth Rs 16.42 Crore in connection with Maharashtra’s fake billing VAT scam | Representational Image
Mumbai: The Enforcement Directorate (ED), Mumbai Zonal Office, has provisionally attached movable and immovable properties worth Rs 16.42 crore under the Prevention of Money Laundering Act (PMLA), 2002. The properties belong to several individuals, including Suresh Parekh, Dinesh Parekh, Rahim Hattiwale, Arvind Ladda and others.
The ED action stems from an alleged Rs 919 crore fake billing scam that reportedly defrauded the Maharashtra government of VAT revenue.the Financial Probe agency said on Thursday.
The ED initiated its probe based on an FIR filed by the Vishrambaug Police Station, Sangli, under Section 420 of the Indian Penal Code (IPC), 1860. The case alleged that entities, including M/s Trishul Enterprises, issued bogus sales invoices worth Rs 458.24 crore to different entities all over the Maharashtra and evaded VAT payments of Rs 28.34 crore, thereby committing offenses under IPC and the Maharashtra Value Added Tax Act, 2002.Said ED
During the investigation, the ED uncovered that fake invoices amounting to Rs 919 crore were generated using 17 shell entities controlled by accused individuals, including Manoj Biyani, Paresh Shah, and Rahim Hattiwale. These entities, registered under fictitious names, conducted no genuine trade. The operation was masterminded by Suresh Parekh, Dinesh Parekh, and Sushant Ladda, who allegedly earned a 2% commission on the fake bills, amounting to Rs 18.67 crore and the . The proceeds of crime were allegedly shared among the accused.
A search operation conducted in June 2023, at the residences of the accused yielded incriminating documents and unexplained cash of Rs 59.5 lakh. The seized evidence corroborates the allegations of tax fraud and money laundering.
The attached properties represent proceeds of crime generated from the fake billing operation.
