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Lucknow, August 24, 2026 (Yes Punjab News)

The Enforcement Directorate (ED) on Monday conducted searches at nine premises in Uttar Pradesh and Haryana as part of a money-laundering investigation into the alleged fraudulent availment and passing of Input Tax Credit (ITC) worth crores of rupees.

The searches, carried out by the ED's Lucknow Zonal Office under the Prevention of Money Laundering Act (PMLA), covered locations in Muzaffarnagar and Ghaziabad in Uttar Pradesh and Faridabad in Haryana.

The case relates to M/s Jambudwip Exports & Imports Ltd., which is allegedly involved in generating and circulating bogus ITC through fabricated invoices and e-way bills without any actual movement of goods.

According to the ED, investigators have detected extensive circular transactions, rapid layering of funds and cash withdrawals involving multiple bogus or non-existent entities. The agency suspects that these entities were used to route and layer proceeds generated through fraudulent ITC transactions.

GST authorities have established fraudulent availment of Rs 9.63 crore in ITC and passing on of Rs 10.28 crore in ITC, resulting in an alleged wrongful loss to the government exchequer. The suspected proceedings of crime are being investigated under the PMLA.

The searches are aimed at tracing the alleged proceedings of crime and identifying individuals and entities that may have benefited from the suspected network.

The ED is also examining documentary and digital evidence to establish the structure of the alleged bogus ITC network and determine the roles of various entities and beneficiaries.

Further details regarding the searches and the ongoing investigation are awaited.