Leading businessmen from Delhi, J&K, other States involved
*CBI, 2 other agencies conduct raids; seize record
Sanjeev Pargal
JAMMU, Mar 19: The Central Bureau of Investigations (CBI), Railways Internal Vigilance Section and State Goods and Services Tax (SGST) Department today conducted joint raids at Jammu Railway Station and unearthed what could turn out to be one of the major GST evasion scam running into crores involving businessmen of New Delhi, other States, Jammu and Kashmir and officials of the Railways.
“Raids were conducted after specific inputs were developed by the three agencies including the CBI that leading businessmen in New Delhi, Jammu and Kashmir and other States in-league with officials of the Railways had developed unique modus operandi to evade GST running into crores,’’ official sources told the Excelsior saying the raids were successful.
As per the nexus, the businessmen were drastically undervaluing the goods being transported in different trains from New Delhi to Jammu in connivance with Railways officials posted in Parcel Office at both Jammu and Delhi Railway Stations.
Some of the bills seized by the CBI showed a Saree carrying price tag of Rs 20, T Shirt valued at Rs 35 and Halogen Lamp at Rs 5, sources said, adding this was being done to keep the goods billing below Rs 50,000, an amount up to which the GST is not applicable. However, in reality, the goods were valued in several lakhs.
“The Railways officers posted in Parcel Office at both New Delhi and Jammu were aware of illegal practices being resorted to by several traders including some leading businessmen. However, the Parcel Section officers were involved in the entire racket and might be charging huge sum from the traders at both the Stations to facilitate under-billing of the goods,’’ sources said.
Three trains in which the goods were being transported today include Rajdhani Express, Jhelum Express and Pooja Express.
Sources said not only New Delhi but in certain trains goods were reaching Jammu from some other Railway Stations also and things would be clear during investigations by the CBI which have been initiated after seizing important documents from the Railway Station.
“The illegal practice was going on for past quite some time,’’ sources said and pointed out GST evasion by the traders of New Delhi, Jammu and Kashmir and some other States might run into several crores as it was deep-rooted nexus. While the Government lost crores, the traders benefited a lot with the under-billing as they had to pay only part of the amount earned by them to the Railways officials as graft to conduct their business illegally.
The investigators have identified some of the traders in New Delhi as well as Jammu and Kashmir, who were involved in running illegal trade of goods avoiding GST and causing huge losses to the exchequer but their numbers could be more. Rest of them will be identified during investigations and questioning of the Railways officials who were facilitating the trade through trains.
However, according to sources, some leading businessmen were also involved in the trade which was evident from the goods trade in evasion of GST.
As number of trains shuttle between New Delhi and many other States to Jammu daily, the investigators suspect that evasion of GST might be going on for the past quite some time. However, it’s detection now will not only prevent further evasion of GST but also help the agencies identity the businessmen involved and recover taxes from them besides initiating action under rules.
Sources said the CBI has seized number of documents during the raids for scrutiny during investigations which will be conducted in assistance with States GST Department and Internal Security Wing of the Railways. They, however, don’t rule out similar tax evasion frauds in many other States using Railway network. The CBI is likely to sound its offices in other States to keep vigil on tax evasion by the unscrupulous traders using train network.
“Employees of the Parcel Office of Railways and businessmen will be called for questioning in due course of time,’’ sources said.
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