Financial investigators targeting large-scale tax evasion in the northeastern region have taken fresh action under federal anti-money laundering laws. The Enforcement Directorate executed a provisional attachment order on August 11, freezing movable and immovable assets with a combined valuation of Rs 36.47 lakh in Arunachal Pradesh. This action forms part of an expanding probe into the fraudulent creation and passing of Input Tax Credit benefits across multiple commercial entities.
Details of the Seized Properties in Papum Pare
The latest enforcement action was carried out by the Itanagar Sub-Zonal Office of the Enforcement Directorate under the provisions of the Prevention of Money Laundering Act, 2002. Officials identified specific assets tied to the proceeds of crime, which include active bank balances alongside a commercial land plot situated in B-Sector, Naharlagun, located within the Papum Pare district of Arunachal Pradesh. The seizure aims to prevent the movement or disposal of assets derived from illegal financial activities while legal proceedings continue.
Origins of the Money Laundering Investigation
The money laundering case originated from a criminal first information report lodged by the Bureau of Investigation (Economic Offences) Police Station in Guwahati. That initial police complaint named M/s Amit Traders along with several associated entities for their alleged involvement in tax fraud. Subsequent financial tracking by federal agents revealed a complex web of operations centered around fake invoices generated to claim unearned tax credits without conducting genuine commercial transactions.
Modus Operandi of the Rs 116 Crore ITC Fraud
Investigators discovered that a firm operating under the name M/s Shree Ram Enterprises served as a primary driver of the fraudulent scheme. During the 2022-23 financial year, the firm generated approximately Rs 116 crore in fake Input Tax Credit by issuing fictitious invoices that lacked any underlying supply of physical goods or services. Out of this total amount, roughly Rs 41.43 crore was systematically routed through a carefully structured network of dummy entities before being transferred to downstream beneficiary businesses.
Targeted Beneficiary Entities and Cumulative Seizures
The recent provisional attachment specifically targeted the bank balance of M/s Sun Force Solar Private Limited after tracing funds directly to the offense. Additionally, assets and bank accounts belonging to Yalpu Enterprise, Angela Enterprises, and Zee Engineering and Construction were attached to recover the value of fake tax credits they allegedly availed and utilized. Prior to this operation, authorities had already attached properties worth Rs 3.30 crore in the same case. That earlier attachment received formal confirmation from the Adjudicating Authority under PMLA, and a formal chargesheet was subsequently submitted before the Special PMLA Court. With the latest action included, total provisionally attached assets in this ongoing case have reached approximately Rs 3.66 crore, with further investigative steps currently underway.
