The financial intelligence agencies probing the Kanpur/Kannauj raid of around Rs 200 crore have found shocking inputs that a firm linked to Kanpur businessman Piyush Jain was sending raw materials for perfume to Dubai in exchange of which he was receiving gold bars.
The gold bars have been seized by the officials of the Directorate General of GST Intelligence (DGGI). A team from the Directorate of Revenue Intelligence (DRI) has also been called to look into the matter.
"On Monday, 23 kg gold and 600 kg sandalwood oil having a market value of about Rs 6 crore were seized from Jain's office and factory premises, which were hidden in an underground storage. Since the gold recovered has foreign markings, the DRI has been roped in to conduct the necessary investigations," said a GST official.
Sources privy to the investigation suspect that this was being done to avoid taxes and Customs duty.
Jain was also sending raw materials for purfume to Singapore-based firms.
"He has links in Singapore too. He used the same modus operandi while sending raw materials for perfume to Singapore. Not only raw materials of perfume, other undeclared items were also being sent abroad," said a source.
A GST official said that the raids are still underway.
"We duly informed the DRI. We are making a new file to send it to the Enforcement Directorate (ED). This is also a case of money laundering. The ED will file a case based on our probe," said a GST official.
On Monday, Jain was remanded to 14-day judicial custody by a local court after he was arrested under Section 132 of CGST Act.
"Jain has accepted that the cash recovered from his residential premises is related to sale of goods without payment of GST," said a GST official.