ED to investigate Ludhiana garment-maker export fraud | punjab$ludhiana | Hindustan Times
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ED to investigate Ludhiana garment-maker export fraud

The Enforcement Directorate (ED) is investigating transactions of seven garment manufacturing companies in Ludhiana for being part of a bogus export fraud of at least Rs 3 crore.

punjab Updated: Oct 26, 2015 21:16 IST
The Enforcement Directorate (ED) is investigating transactions of seven garment manufacturing companies in Ludhiana.
The Enforcement Directorate (ED) is investigating transactions of seven garment manufacturing companies in Ludhiana. (Representative Photo/Livemint )

The Enforcement Directorate (ED) is investigating transactions of seven garment manufacturing companies in Ludhiana for being part of a bogus export fraud of at least Rs 3 crore.

The companies - M/s Jal Dhara Exports, M/s Jal Dhara Fibres, M/s Trimurthi Hosiery, M/s Shreyas International, M/s Jal Dhara Cotspin, M/s Umesh Spinners and Brij Spinners - are accused of having availed govt export subsidies based on fake documents that claimed their goods were being sold in Bangaldesh, even as they were doing business only in West Bengal.

The management of three of these companies - M/s Jal Dhara Exports, M/s Trimurthi Hosiery and M/s Shreyas International - is already facing a First-Information Report (FIR) registered in 2013 on information provided by the Customs department. These companies are also facing an inquiry from the Economic Offence Wing of the police. The case comes up for hearing before the Punjab and Haryana high court on October 30.

Evidence that indicates fraud

According to information available, export incentives (also called drawbacks) had been claimed from the excise department for export even as the vehicle registration numbers in which the goods were supposedly transported were forged. With the ED called in to look into the matter, the full extent of the scam might be revealed.

Amount already paid

In the police department probe, it has already come to light that Rs 1.56 crore of drawbacks (incentives) were transferred by the state excise department to the account of M/s Jal Dhara Exports on March 25, 2013. The owner transferred the amount to five different accounts in less than 24 hours. The other companies have also been paid Rs 1.14 crore and Rs 74 lakh.

On June 23, 2013, assistant commissioner of customs wrote a letter to assistant excise and taxation commissioner (economic intelligence wing) Punjab government, stating, “On going through documents supplied to this office for verification and records of this office, it has been observed that no export has been done through the port by the said seven companies”.

The letter added that the customs officers, who are shown to have signed the export documents of these companies, were not even posted at the site during 2012-13. “The documents provided by you regarding the (seven) exporters appear to be fake,” the letter reads.

The companies under investigation had provided information to the excise department on trucks used to carry goods from Ludhiana to West Bengal. A careful reading of documents reveals that trucks reached West Bengal on the same evening on which they had left Ludhiana in the morning.

“The assets of the accused companies would be confiscated after investigation is complete and we will zero in on all responsible,” an ED official, posted in Jalandhar, told HT over phone.

The claim: Ludhiana truck reaches West Bengal same day?

The companies under investigation had provided information to the excise department on trucks used to carry goods from Ludhiana to West Bengal. A careful reading of documents reveals that trucks reached West Bengal on the same evening on which they had left Ludhiana in the morning.