By Atul Krishan New Delhi, December 28th : .Multiple financial agencies continue raiding the various premises of Kanpur-based fragrancer Piyush Jain.
He was taken into custody by the Directorate General of GST Intelligence (DGGI) on Monday.
His Kanpur and Kannauj premises contained cash, gold bars, and sandalwood oil worth approximately Rs 200 crore.
After that, more agencies were brought in to investigate the case.The IANS takes a look back at the beginning of this whole affair.
The tip of the iceberg were fake invoices worth Rs 50,000
The incident began when a team from DGGI Ahmedabad discovered fake invoices below Rs 50,000.These were created by Ganpati Road Carriers in order to dodge Customs duties and taxes.
Piyush Jain was connected to Ganpati Road Carriers.
The DGGI team gathered information on Ganpati Road Carriers, its owners and associates and decided to raid their premises.
First raid took place at Trimuti Fragrance Pvt Ltd (manufacturers of Shikhar brand Pan masala) which Piyush Jain reportedly owns.
As they were armed with more details about the cash, the DGGI team did not abandon their search.
A second raid took place at Ganpati Road Carriers later.Ganpati Road Carriers transported the products from Trimuti Fragrance Pvt Ltd to various locations.
Trimuti Fragrance, the manufacturer of the goods was providing them but not paying any taxes.Fake invoices below Rs 50,000.were generated by Ganpati Road Carriers.
We intercepted 4 trucks loaded with goods.All invoices had a value of less than Rs.50,000, which surprised us.If you have products with a value greater than Rs.50,000, it is necessary to create e-way bills.Otherwise, the state will refuse to allow the truck carrying goods to cross their borders.They created bills below Rs.50,000 in order to allow us a slip.We became suspicious, and we discussed it with our senior citizens to raid the factory and transporter.” A source said.
Ganpati Road Carriers generated numerous invoices under the names of different firms.
The company also collected cash payment against sale/purchase of goods, and returned them to Trimuti Fragrance once the commission was deducted.
The DGGI seized the four cargo-laden trucks belonging to Trimuti Fragrance from outside their factory.
They were removed from the premises without any invoices and e-way bills.
All the products had been supplied to their customers without GST.Interrogation revealed that the authorized signatory to the company had admitted this.
Officials at GST also recovered 200 counterfeit invoices from Ganpati Road Carriers.
Recuperation of bundles notes
The authorities then sent an additional team to Odochem Industries’ residential address.This private company supplied raw material to Trimuti Fragrance Private Ltd.
A large amount of cash wrapped in paper was discovered during the searches.
It was full of money.
Officials from the State Bank of India were able to help us.They suggested that it would be impossible to count cash without a note-counting machine.Eventually, around 20 counting machines were used.”We continued counting cash until December 28th, which was around Rs 200 crore,” a official stated.
As the case involved not only evasion of Customs duties but also tax evasion, the DGGI team called in the Income Tax Department.
Interrogation
Praveen Jain was then taken into custody by the DGGI team.
The probe team was not satisfied with his answers and he even attempted to deceive them.It was discovered that Piyush Jain (the brother-in law of Praveen) played an important role in this entire network.
The team immediately went to Piyush’s Kanpur home, where he was held.
We questioned him regarding the money, but he refused to answer all our questions.The official stated that we took him to Kannauj’s paternal home to search for gold and found 2.5kg.
What was the secret to his hiding of gold and cash?
Piysh Jain kept the cash hidden in a basement chamber.Wrapped in paper, the cash was kept safe.
The cash was in bags, and the gold bars were kept inside a cabinet.
Officials from the DGCI have recovered sandalwood oil valued at Rs 6 crore and 23kg gold.500 keys were also found.There are also 109 locks and 18 safes.
Financial intelligence agencies claim that Piyush Jain owns four properties in Kanpur and seven in Kannauj.Two in Mumbai and one in Delhi.
The agencies also claim that he has two properties located in Dubai.
The DGGI filed a complaint under Section 67 (GST Act).
The I-T Department is going to investigate the issue of tax evasion.As the Dubai-sourced gold bars are allegedly being brought to the United States, the Directorate of Revenue Intelligence is also investigating the case.
The Enforcement Directorate will receive a comprehensive report from the DGGI.In future, the ED may file cases under the Prevention of Money Laundering Act.
atk/arm
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