After conducting searches at numerous locations associated with Uttar Pradesh businessman Piyush Jain in Kanpur and Ujjain, the Directorate General of Government Intelligence (DGGI) confiscated over Rs 195 crore in cash, 23 kg of gold, and Rs 6 crore in sandalwood oil.
Officials searched the Kanpur home of Piyush Jain, a partner in Odochem Industries, and discovered unaccounted cash totaling Rs 177.45 crore. Odochem Industries’ home and factory sites in Kannauj were examined by DGGI officers, who discovered Rs 17 crore in cash.
To count such a large sum of money, DGGI officials had to enlist the assistance of State Bank of India personnel and their currency counting machinery.
The crew discovered 23 kilograms of gold as well as a massive amount of unaccounted raw material used in the production of perfumery compounds, including over 600 kilograms of sandalwood oil concealed in an underground storage facility. The sandalwood oil is worth more than Rs 6 crore on the market.
Because the found gold includes foreign markings, the DGGI has enlisted the help of the Directorate of Revenue Intelligence (DRI).
“This is the largest cash confiscation ever made by officials from the Central Board of Indirect Taxes and Customs.” “The documents seized from the premises are being examined,” DGGI’s Additional Director General Vivek Prasad said in a statement.
PIYUSH JAIN HAS BEEN ARRESTED
DGGI officers interrogated Piyush Jain based on evidence gathered throughout the investigation. On December 25 and 26, his statement was recorded under Section 70 of the CGST Act.
“Piyush Jain has agreed that the cash seized from the home premises was related to the selling of products without the payment of GST. Piyush Jain was arrested on December 26, 2021 for commission of offences prescribed under Section 132 of the CGST Act and was produced before the competent court on December 27, 2021, according to the statement. “In light of the overwhelming evidence available on record indicating large-scale GST evasion by Odochem Industries, Kannauj, Piyush Jain was arrested on December 26, 2021 for commission of offences prescribed under Section 132 of the CGST Act and was produced before the competent court on December 27,
Piyush Jain has been remanded in detention for a period of 14 days.
Officials are examining the material gathered throughout the last five days of searches in order to uncover the tax evasion.
WHAT HAPPENED AND HOW IT HAPPENED
The Ahmedabad unit of the DGGI had launched a search operation at Shikhar Pan Masala’s factory in Kanpur, Ganpati Road Carriers’ office and go-downs in Kanpur, and Odochem Industries’ residential and factory sites in Kanpur and Kannauj, based on specific intelligence data. Odochem Industries is a fragrance compound provider.
Ganpati Road Carriers’ four trucks were the first to be intercepted by the officials. The vehicles were allegedly transporting pan masala and cigarettes without paying the GST. Officials compared the actual stock in the factory to the stock in the books and discovered a shortfall of raw materials and finished goods.
“This further confirmed that the manufacturer was engaging in illegal removal of items with the assistance of a transporter who used to produce fraudulent invoices to handle the shipment of those goods,” DGCI said.
Over 200 fraudulent invoices were confiscated by the authorities. Shikhar Pan Masala’s manufacturers recognised their tax duty and paid a sum of Rs 3.09 crore as a penalty.
Shikhar Pan Masala received fragrance components from Piyush Jain’s Odochem Industries. Officials discovered a large amount of cash and gold when they searched the homes and factories linked to Jain.