ED raids 9 locations in UP, Haryana over ₹10.28 crore bogus ITC fraud
Synopsis
The ED has raided nine locations across UP and Haryana in a ₹10.28 crore bogus ITC case, targeting M/s Jambudwip Exports & Imports Ltd. The probe has uncovered circular transactions, shell entities, and cash layering — pointing to a structured operation that allegedly caused a multi-crore loss to the government exchequer.
Key Takeaways
The ED Lucknow Zonal Office searched nine premises in Muzaffarnagar , Ghaziabad (UP), and Faridabad (Haryana) on 24 August .
The case centres on M/s Jambudwip Exports & Imports Ltd. , accused of generating bogus ITC through fake invoices and E-way bills.
GST authorities established fraudulent availment of ₹9.63 crore ITC and passing on of ₹10.28 crore ITC.
Investigators found circular transactions , fund layering, and cash withdrawals via multiple shell or non-existent entities.
Searches are being conducted under the Prevention of Money Laundering Act (PMLA), 2002 ; further findings are awaited.
The Directorate of Enforcement (ED), Lucknow Zonal Office, on Monday, 24 August conducted searches at nine premises across Muzaffarnagar and Ghaziabad in Uttar Pradesh and Faridabad in Haryana, targeting an alleged money laundering network linked to fraudulent Input Tax Credit (ITC) transactions. The raids are part of an ongoing probe under the Prevention of Money Laundering Act (PMLA), 2002.
The Alleged Fraud Network
According to officials, the investigation centres on M/s Jambudwip Exports & Imports Ltd., an entity allegedly involved in generating and circulating bogus ITC through fabricated invoices and E-way bills — with no actual movement of goods corresponding to the documentation. Investigators suspect the company and associated entities created a web of fictitious transactions to siphon tax credit from the government exchequer.
Notably, the probe uncovered extensive circular transactions, rapid layering of funds, and cash withdrawals routed through multiple bogus or non-existent entities — classic indicators of shell-company-based money laundering.
Scale of the Alleged Loss
GST authorities have reportedly established that ₹9.63 crore in ITC was fraudulently availed, while ₹10.28 crore in ITC was passed on, causing a wrongful loss to the government exchequer. Under the PMLA, these amounts constitute proceeds of crime, officials said. The use of non-existent entities to withdraw cash further points to a structured layering operation, according to investigators.
What the ED Is Looking For
The searches are aimed at tracing the alleged proceeds of crime and identifying individuals and entities that may have benefited from the suspected network. Investigators are also gathering documentary and digital evidence to map the complete structure of the fraudulent ITC network and establish the roles of various beneficiaries involved in the transactions.
What Happens Next
Further details from the searches and the broader investigation are awaited, officials said. The ED's Lucknow Zonal Office is expected to issue formal findings once the searches conclude and evidence is analysed. Arrests or asset attachments under the PMLA could follow if investigators establish a direct link between individuals and the alleged proceeds of crime.
Point of View
And this case follows a familiar pattern — fabricated invoices, shell entities, and circular cash flows designed to obscure the trail. What stands out here is the scale of pass-through: ₹10.28 crore in fraudulent ITC allegedly moved through a network with no underlying goods movement. The ED's involvement signals that GST enforcement alone has not been sufficient deterrence. The real question is whether the PMLA route — with its asset attachment powers — will translate into actual recoveries, or whether, as in several past cases, the paper trail will outlast the prosecution.
NationPress
24 Aug 2026
Frequently Asked Questions
What is the ED's bogus ITC case in UP and Haryana about?
The ED is investigating an alleged money laundering network that fraudulently generated and passed on Input Tax Credit (ITC) through fake invoices and E-way bills, with no actual movement of goods. GST authorities have established a wrongful loss of ₹10.28 crore in ITC passed on and ₹9.63 crore in ITC fraudulently availed from the government exchequer.
Which company is at the centre of the investigation?
M/s Jambudwip Exports & Imports Ltd. is the primary entity under scrutiny, accused of creating and circulating bogus ITC using fabricated documentation. The ED suspects several associated entities were also used to layer and withdraw funds.
Where did the ED conduct its searches on 24 August?
The ED searched nine premises across Muzaffarnagar and Ghaziabad in Uttar Pradesh, and Faridabad in Haryana, as part of the ongoing PMLA investigation.
What evidence is the ED looking for?
Investigators are seeking documentary and digital evidence to map the full structure of the alleged fraudulent ITC network, identify beneficiaries, and trace the proceeds of crime for potential attachment under the PMLA.
What could happen next in the case?
Once the searches conclude and evidence is analysed, the ED may proceed with arrests or asset attachments under the PMLA if direct links between individuals and the alleged proceeds of crime are established. Formal findings from the Lucknow Zonal Office are awaited.
