Three arrested for VAT fraud, tax evasion during demonetisation

The government had announced demonetisation of old Rs 500 and Rs 1000 notes on November 8, 2016.During investigation, the VAT details of the alleged firm were obtained and it was revealed that the firm was registered at Moti Nagar and manager details were given as Daya Shankar, a resident of Tagor Garden, the officer said.

Three persons were arrested for allegedly committing VAT fraud and tax evasion by depositing huge cash in fake account during demonetization, police said on Friday. The accused have been identified as Vijay Goyal (33), Jaideep (30) and Kamal Shorewala (48), all residents of Kaithal in Haryana, they said. According to police, Pankaj Batra alleged that Daya Shankar had obtained TIN number from the VAT department in 2014 in the name of M/s Jai Mahalaxmi Products by misusing the pan card and voter ID card belonging to him and got issued registration certificate for registered head office situated at Moti Nagar. On the basis of the registration certificate, the accused opened bank account at Kaithal in the name of M/s Jai Mahalaxmi Products, police said. The complainant came to know about the facts when he received notice from the income tax department on February 2, 2017, where he was asked to furnish explanation regarding deposit of Rs 5,25,47,500 in the bank during demonetization period , a senior police officer said. The government had announced demonetisation of old Rs 500 and Rs 1000 notes on November 8, 2016.

During investigation, the VAT details of the alleged firm were obtained and it was revealed that the firm was registered at Moti Nagar and manager details were given as Daya Shankar, a resident of Tagor Garden, the officer said. The investigation was conducted and no such firm was found at the given address and no such person called Daya Shankar was found residing at D-206 Raghubir Nagar, Tagor Garden, police said. “Account opening form of the alleged firm was analyzed and it was found that Goyal and Jaideep were introducers in the fake account. Jaideep received cheque books from the bank. He also deposited and withdrew cash several times,” Joint Commissioner of Police (EOW) Chhaya Sharma said. Goyal was also the beneficiary of the alleged fake firm bank account, police said. Both the accused were arrested. They disclosed that they used to manage the alleged bank account of the fake firm. On their instance, Shorewala was also arrested, police said.

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