Mahesh Langa GST fraud case: Gujarat-based journalist arrested, not named in FIR – India News

Mahesh Langa Multi Crore GST Scam: The Ahmedabad Crime Branch on Tuesday arrested a Gujarat-based journalist of The Hindu along with three others in a suspected Goods and Services Tax (GST) fraud.

This development came a day after 13 companies and their owners were booked following a complaint filed by the Directorate General of GST Intelligence (DGGI).

After extensive questioning, journalist Mahesh Langa was arrested by the Crime Branch on Tuesday morning, Deputy Commissioner of Police (Crime) Ajit Rajian said, PTI reported.

“The Central GST had discovered some suspicious transactions in fake companies carried out in the name of Mahesh Langa’s wife and father using forged documents. Langa has been arrested for further investigation,” he added.

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Rajian further added, “We have recovered unaccounted cash of Rs 20 lakh, some gold and several land documents from him.”

On Monday, the city crime branch registered an FIR against several individuals and entities after receiving a complaint from the central GST about an alleged scam involving floating shell companies with an intention to defraud the government by availing fake input tax credits through fraudulent transactions, according to a press release from said the criminal investigation department.

According to the FIR, over 220 shell companies were set up using forged documents and were part of the plan, IE reported.

After registering the FIR, the Crime Branch along with Gujarat’s Economic Crimes Department searched 14 different locations across the state, including Ahmedabad, Junagadh, Surat, Kheda and Bhavnagar.

While Langa is not named in the FIR, his cousin Manojkumar Langa is named as one of the owners of an Ahmedabad-based company, DA Enterprise, in which Mahesh Langa’s wife is a partner, police allege. Neither Langa’s cousin nor his wife have been arrested yet, IE reported.

Other accused in the case include Talala BJP MP Bhagwan Barad’s son Ajay and his nephews Vijaykumar Kalabhai Barad and Ramesh Kalabhai Barad. Meanwhile, the companies named as accused in the FIR include Dhruvi Enterprise, Om Construction, Raj Infra, Haresh Construction Company and DA Enterprise.

According to the FIR, the alleged fraud was said to have been committed between February 1 and May 1 last year. According to the FIR and the police, the main accused in the case is a company called Dhruvi Enterprise, which allegedly set up six companies from a single PAN. The aim was to exploit ITC by providing evidence of transactions that were never actually carried out, police said.

Ahmedabad city police commissioner Gyanender Singh Malik claimed, “(Mahesh Langa’s) wife is a director of one of the companies involved in the GST scam.” “However, when the crime branch questioned her, she said she knew nothing about such company or the use of their name therein. Police then questioned Mahesh Langa and found that he was the one who ran the entire company,” he claimed, according to a report by Indian Express.

On Mahesh Langa’s name not appearing in the FIR, he said, “Just because his name is not in the FIR does not mean that Mahesh Langa is not an accused. His role in one of the companies came to light during the investigation, which is why he was arrested by the criminal investigation department.”

The Crime Branch also arrested Aijaz, a resident of Bhavnagar and a partner in a company that sells switchboards; Abdulkader, another resident of Bhavnagar who sells sugarcane juice, ready-made clothes and mattresses; and Jyotish Magan Gondaliya, a Surat resident who owns a business with his wife.

(With inputs from PTI)