Mahesh Langa, the Ahmedabad-based journalist, has been charged by the Enforcement Directorate (ED) for playing a significant part in a multi-core Central Goods and Services Tax (CGST) scam that involved hundreds of shell corporations. According to the sources, the ED has discovered a network of 200 shell companies that are used to fraudulently claim Input Tax Credit (ITC) without any exchange of goods and services.
Who Is Mahesh Langa?
Mahesh Langa, The Hindu’s Gujarat correspondent, who has been registered in his 3rd FIR charged with exploiting his job to commit illegal transactions, settlements, and participate in extortion, allegedly making millions of dollars in the process. An FIR has been filled in Gandhinagar about his name in a case involving leaked government documents.
The Ahmedabad Crime Branch recently searched Mahesh’s house and found property paperwork, pricey jewelry, and Rs 20 lakh in cash. Mahesh’s annual salary was just Rs. 9.48 lakh, as per his most recent 2022-23 income tax return, while his wife’s income was Rs. 6.04 lakh, which means in total Mahesh’s annual income was approximately Rs 15.5 lakh and then the amount of Rs. 20 lakh is discovered at his home. Additionally, Mahesh and his spouse have also been exposed to have stayed in upscale hotels on a regular basis.
Allegations of Fake Company Networks
The ED claims that Dhruvi Enterprises, one of the shell firms, was established using forged documentation to register for GST, had sent phony invoices to 12 distinct businesses, including DA Enterprises, who subsequently submitted false claims for ITC to the GST department. Mahesh Langa is accused by investigators of controlling DA Enterprises, from which unaccounted cash was taken, and then suspect that he also engaged in other benami transactions using shell corporations.
Ongoing Search Operations
In the course of its broader probe, the ED searched Langa’s and his accomplices’ homes in Ahmedabad, Surat, and Bhavnagar, Gujarat, on Sunday. According to reports, “incriminating documents” connected to the shell businesses engaged in false ITC applications were found during the searches.
In an effort to uncover the large plot, the ED previously inspected 23 locations in Gujarat connected to these shell businesses. An agency said, “Various statements were recorded under PMLA (Prevention of Money Laundering Act) and inquiries were made from statutory authorities during investigation, which could not establish the authenticities of these transactions”.
Police Commissioner Verifies Shell Companies’ Role
According to Ahmedabad’s Police Commissioner G.S. Malik, Langa operated DA Enterprises, a shell corporation purportedly used to transfer funds through fictious expenses. Malik stated, DA Enterprises’ turnover increased from Rs 21 lakh in 2020-21 to Rs. 6.7 crore in 2022-23. Malik claims that after being moved to Dhruvi Enterprises, the money was taken out as cash and sent back to Mahesh using hawala networks. Malik emphasized that “we have not shown any vindictiveness in the case” and stated that Langa’s wife and cousin were found not guilty during the probe.
Lifestyle Differences Warn The Income Tax Department
Despite declaring an annual salary of Rs. 9.48 lakh and his wife earning Rs 6.04 lakh, authorities found that Langa allegedly lived a lavish lifestyle. Malik submitted Langa’s overseas excursions and upscale spending to the Income Tax agency for additional investigation after the crime branch found Rs 20 lakh in undeclared cash during a raid at his home.
Additional Shell Company Allegations
According to a city police report, Langa transferred money from DA Enterprises to Nisarg Enterprises, a business run by his brother, Manhar, a teacher at a government school, and Manhar’s wife. According to the police, Nisarg Enterprises carried out questionable transactions totaling several lakhs.
As part of their larger crackdown on tax-related crimes in the state, the ED and other investigative agencies are still looking into Langa’s role in the CGST fraud and money-laundering claims.
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