₹497-cr penalty imposed on perfume baron Piyush Jain

During raids on December 23, 2021, ₹196 crore cash was unearthed, of which ₹178 crore was found at his residence in Kanpur while another ₹19 crore and 23 kg gold biscuits/bricks were dug out from walls at his ancestral house in Kannauj

KANPUR The Directorate General of GST Intelligence (DGGI) has imposed a ₹497-crore penalty on Kanpur-based perfume baron Piyush Jain for GST evasion and gold smuggling. He was under scrutiny after the DGGI and the Directorate of Revenue Intelligence (DRI), Income Tax department, seized a huge amount of cash stashed in his house on December 23, 2021.

During raids on Jain’s premises, the DGGI had employed 13 currency counting machines that counted notes non-stop for 36 hours. (File Photo)

A total of ₹196 crore cash was unearthed, of which ₹178 crore was found at his residence in Anandpuri, Kanpur while another ₹19 crore and 23 kg gold biscuits and bricks were dug out from walls at his ancestral house in Kannauj.

Jain was arrested after these recoveries and spent 254 days in jail before he was granted bail by the high court in September, 2022.

On Tuesday, the DRI told the chief judicial magistrate’s court in Lucknow about the penalty imposed on Jain and his three firms - Odochem Industries, Flora Naturale and Odosynt Inc. Jain’s partners in these firms, Ambrish Jain, Mahesh Jain had also been served penalty notices.

Prosecuting lawyer Ambrish Tandon said the penalty had been imposed in the case involving 23 kg gold, which had been seized. The penalty was calculated on the basis of assessment by DGGI Ahmedabad unit, which had led the raid on Jain’s premises.

“The DGGI has imposed a penalty of ₹496.68 crore on Jain and his firms. In the past, the agency had sent a notice to Jain, his firms and people associated with him,” he said.

During raids on Jain’s premises, the DGGI had employed 13 currency counting machines that counted non-stop for 36 hours. The cash was transported in 42 big tin boxes. Two cases were lodged against Jain -- one for GST evasion and the second for gold smuggling. He was also a supplier of essential compound that is used for giving unique flavour to paan masala.