Director of Jagdamba Enterprises arrested for alleged tax evasion of Rs 5 crore

PUNE: Director of Jagdamba Enterprises in Pune was on Friday arrested by Goods and Services Tax authorities for alleged tax evasion of Rs 5 crore.

CGST Commissionerate arrested Naresh Bansal, director of Jagdamba Enterprises, for availing ‘ineligible credit’ of Rs 5 crore.

The director of Jagdamba Enterprises received goods worth Rs 32 crore from Delhi-based counterfeit companies. Based on those bills, the company was only exchanging invoices for so called sale and purchase. There was only paper and invoice movement, but no actual sale or purchase of goods.

Investigation revealed that these exchanges were being done with a “malafide intention to defraud the exchequer by opening Letters of Credit (LCs) on fake purchase transactions”.

Naresh was produced before the court on March 2 and the court remanded him to 14 days of judicial custody. “In this case, the entire financial transaction is being verified,” said Sachin Ghagre, Deputy Commissioner of Vigilance Squad, Headquarters, GST Commissionerate.