The Directorate General of Goods and Services Tax Intelligence (DGGI) discovered ₹200 crore in tax evasion during raids on oil companies in Jamnagar and Rajkot and scrap merchants in Ahmedabad. Over 25 of these firms were raided by DGGI, and the investigation into these searches is currently ongoing.
The total amount of the scam is expected to increase.
The Ashint Enterprise owner in Odhav, Ahmedabad, has nine businesses registered in his name and five in his wife’s name. These companies’ tax scam documents were found during the raids. Now, the DGGI has begun looking into the businessmen who work for Ashint Enterprise, which has its headquarters in Odhav.
In Jamnagar, raids were conducted at other dealers and distributors. This group’s owners import base oil and resell it for industrial purposes. A tax scam involving lakhs of rupees was committed when they declared it to be high-speed fuel during importation.
Digital gadgets, suspicious paperwork pertaining to incorrectly claimed input tax credits, and a significant quantity of fake purchase and sales records were confiscated during the raids on scrap and base oil sellers in Rajkot and Ahmedabad. Although these records are still being investigated, preliminary results point to a scheme involving over ₹200 crore.
In Rajkot and Jamnagar, DGGI officers also conducted raids on base oil traders’ offices, warehouses, and distributors.
In the past, DGGI officers raided Ashapura Enterprise in Gondal, Rajkot, which was owned by the brother of former BJP MLA Jayrajsinh Jadeja.
A significant tax scam involving the import of base oil was discovered during the operation. More names are anticipated to surface as the inquiry continues, indicating that the network is substantially larger.
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