Ranchi, Oct 2 (IANS) A Special PMLA Court sent a Jamshedpur businessman and his son to judicial custody after they were arrested by the ED in a case related to a GST fraud involving approximately Rs 734 crore, said an official on Friday.
The Enforcement Directorate (ED) arrested Gyanchand Jaiswal, alias Bablu Jaiswal, and his son, Raj Jaiswal, in connection with the GST fraud on September 30, an official said.
The ED interrogated the two arrested accused to gather information about the alleged fraudulent GST transactions and the associated money flow before producing them before the Special Court for custody proceedings on Thursday, an official said in a statement.
They were arrested after the ED raided several locations in Jamshedpur, Adityapur, Gamharia, and Kolkata. After conducting medical examinations, the ED team brought them to Ranchi.
The ED said that this case involves the alleged use of fake invoices to obtain input tax credit (ITC) without any actual purchase or sale of goods.
The agency is also investigating transactions made through shell companies and the associated money flow. During Wednesday’s operation, the ED searched premises linked to Gyanchand Jaiswal, as well as the premises of his auditor, Sanjay Parekh, and other individuals, officials said.
They further mentioned that the investigating team examined business documents, GST-related records, banking and financial transaction documents, and electronic devices.
This ED action was taken under the Prevention of Money Laundering Act (PMLA), officials said.
The investigating agency suspects that large-scale misuse of ITC was allegedly carried out through shell companies and paper transactions. The initial investigation into the case was conducted by the Directorate General of GST Intelligence (DGGI), Jamshedpur.
The investigation revealed the misuse of ITC through shell companies and fake invoices.
According to a 2024 order of the Jharkhand High Court, Gyanchand Jaiswal was arrested in June 2024 in a case registered under the GST Act and was subsequently remanded to judicial custody.
The ED investigation has reportedly uncovered several companies and fraudulent transactions linked to this network.
The agency also took action against several other businessmen from Jamshedpur and Kolkata in connection with this case in 2025.
–IANS
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