Gujarat journalist Mahesh Langa controlled company involved in CGST fraud case: ED | Ahmedabad News – Times of India

In its money laundering probe against Ahmedabad-based journalist Mahesh Langa, the Enforcement Directorate (ED) on Tuesday accused him of being a key figure in a multi-crore CGST fraud case, and said the probe so far has unearthed a network of 200 shell companies created by a criminal syndicate to fraudulently claim input tax credit (ITC) without supply of any goods or services.
“Dhruvi Enterprises was created on fake documents to obtain GST registration. Later, this entity raised fake invoices in the name of 12 different entities, including DA Enterprises, which availed fraudulent ITC from the GST department. During investigation, it has come to notice that one Mahesh Langa was controlling DA Enterprises, from whose premises a large quantity of unaccounted cash was seized by the police, and it is further gathered that various other benami transactions are suspected to have happened with shell companies,” the ED said.
On Sunday, the agency carried out searches across several cities in Gujarat for the second time, including on the premises of Langa and his associates in Ahmedabad, Surat and Bhavnagar and claimed to have seized several “incriminating documents” related to the fraudulent ITC claims by the network of shell entities.
In this case, ED’s Ahmedabad unit had earlier conducted searches at 23 locations in Ahmedabad, Bhavnagar, Junagadh, Veraval, Rajkot, Surat and Kodinar where these shell companies had their registered addresses and were availing ITC based on fake invoices.
Cases against Langa and others are being probed by Gujarat Police, the Directorate General of GST Intelligence and the ED.
“During investigation, enquiries were made from statutory authorities and various statements were recorded under PMLA, which could not establish the authenticity of these transactions. Accordingly, searches were conducted at the locations of such persons/entities, to unearth larger conspiracy involved in the same,” the agency said. Further investigation is on.
Langa operated shell company; wife, cousin innocent: CP
Police commissioner G S Malik said he personally interrogated Mahesh Langa in the CGST case and the probe revealed that Mahesh was operating a shell company, DA Enterprises, which had posted a turnover of Rs 21 lakh in 2020-21 that jumped to Rs 6.7 crore in 2022-23. “DA Enterprises was being used to route money by artificially increasing expenses in the form of fake billings. Money was transferred to Dhruvi Enterprises, and it was then withdrawn as cash and routed back to Mahesh through hawala network,” Malik said.
Mahesh’s cousin, Manoj, who works with a private security company, and his wife have claimed innocence. “In his statement recorded before a judicial magistrate, Manoj stated that Mahesh Langa was running the shell company and he was unaware of the financial transactions carried out by the firm,” said Malik.
“Mahesh Langa’s cousin and wife have not been arrested as they were found to be innocent in the police probe too…. We have not shown any vindictiveness in the case. Had we been vindictive, we would have also arrested his wife and cousin, but they are innocent,” reiterated Malik, adding that cops have only arrested Langa as he is the main accused.
I-T dept alerted about Langa’s ‘unexplained expenses’
Ahmedabad police commissioner GS Malik said that the probe revealed Langa lived a lavish lifestyle and travelled to various foreign countries. “His lavish lifestyle included staying in the presidential suites of 5-star hotels, flying on business and chartered flights, purchasing high-end luxury brand clothing and gifts and making expensive trips to foreign destinations including Dubai, Abu Dhabi and Hong Kong. To investigate his lifestyle and his unexplained expenses is not the mandate of the current investigation. For that we have informed the income-tax department,” said Malik.
Malik noted that as per the income-tax returns of 2022-2023, Langa’s annual income was Rs 9.48 lakh and his wife’s income was Rs 6.04 lakh — a total of Rs 15.52 lakh. Yet, he lived a lavish life and the crime branch recovered unaccounted cash of Rs 20 lakh from his residence during a raid, said police.
Firm floated in name of Langa’s brother, sister-in-law
A statement from the city police said that to further consolidate his money, Mahesh Langa had started diverting money from claimed contracts away from DA Enterprises to Nisarg Enterprises.
Nisarg Enterprises was formed in 2023 and is being managed by Mahesh Langa’s brother, Manhar, a govt school teacher, and owned by Manhar’s wife at the behest of Mahesh Langa. Nisarg Enterprises in one year has done suspicious business of several lakhs of rupees, according to the statement.