Fake GST Invoices and Dubai Fund Trail Under ED Scanner

The Enforcement Directorate (ED) on Monday conducted search operations at six locations across Punjab, Uttar Pradesh, and the Delhi-NCR region in connection with a money laundering investigation involving Hampton Sky Realty Limited.

According to ED officials, the searches were carried out at premises located in Ludhiana, Jalandhar, Bareilly, and the Delhi-Noida region. The premises being searched include residential properties and business offices associated with individuals and entities linked to Hampton Sky Realty Limited.

The case has been linked to Sanjeev Arora, although the investigation remains ongoing and authorities are yet to disclose the complete findings of the latest searches.

According to the ED, its probe uncovered what it described as a large-scale money laundering operation allegedly carried out through entities connected to Arora. Investigators claim that fake Goods and Services Tax (GST) purchases of mobile phones worth more than ₹100 crore were generated and subsequently used in export transactions to allegedly facilitate the round-tripping of illegitimate funds from Dubai back into India.

The agency has alleged that multiple fake GST purchase invoices were obtained from non-existent firms based in Delhi. These invoices were allegedly used to fraudulently claim input tax credits, GST refunds on exports, and duty drawback benefits, resulting in wrongful gains to the accused and significant losses to the government exchequer.

Officials stated that the ongoing searches aim to gather documentary evidence, trace financial transactions, and identify the complete network of individuals and entities involved in the alleged fraud. Further details are expected to emerge as the investigation progresses.

The ED has not yet released information regarding any seizures, arrests, or additional actions arising from the current round of searches.