The Enforcement Directorate (ED) today raided the house of a businessman here in connection with an alleged Rs 1.14 crore VAT refund scam, officials said.
The raid was conducted under the supervision of Additional Director (ED) Rajeev Kumar at the residence of Raman Garg at Aggar Nagar at Ferozepur road, they said.
The officials said that the case dates back to 2012-13 when the ED claimed to have unearthed a Rs 1.14 crore worth VAT refund scam in which the accused had allegedly duped the government by using forged documents.
Raman Garg of Jaldhara Exports of New Moti Nagar here along with Rajeev Mehan of Shreyas International had allegedly submitted forged documents to Rs 1.14 crore as Value Added Tax (VAT) refund, they said.
The company had claimed of exporting ready made garments worth Rs 33.36 crore to Bangladesh in 2012 through a West Bengal port. Later, it was found that no such export took place and the accused duped the government of Rs 1.14 crore, the officials said.
Of the Rs 1.14 crore claimed by the accused, Rs 67.5 lakh was allegedly diverted to Jaldhara Cotspin Private Limited owned by Garg while rest of Rs 47.5 lakh was allegedly used by Mehan to repay his loans, they said.
The ED found that the documents submitted by the accused had wrong names of custom officials which did not match with their records.
The ED had attached their properties worth Rs 1.14 crore few months back.
The Ludhiana Police had booked Garg, Mehan and their accomplices under the sections 420 (cheating), 465 (forgery), 467 (forgery for valuable security), 468 (forging for purpose of cheating), 469 (forging for purpose of harming reputation) and 471 (Using as genuine a forged document) of Indian Penal Code at Division Number 5 police station on November 14, 2013.
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