DGGI raids: Firms surrender Rs 21cr

Ludhiana: The massive raids being conducted by the Directorate General of GST Intelligence (DGGI), New Delhi, on eight prominent Ludhiana yarn manufacturers ended on Tuesday afternoon. In a shocking development, the department has so far been able to yield Rs21 crore worth of tax and penalty from six business houses which were targeted in the raids.
The probe is still on and according to sources, the tax recovery in this case may cross over Rs 100 crore.

Meanwhile, officials of DGGI’s zonal office, who were a part of the operation, could not be contacted despite repeated attempts.

Sources said that two firms came out clean during the action conducted on the suspicion of bogus billing and claiming fraudulant input tax credit (ITC) in connivance with Hisar and Sirsa based cotton traders who had been supplying fake invoices of cotton to these firms.

The operation which was started on Monday had triggered tension among yarn manufacturers of the region. The raids were conducted simultaneously by 400 officers and the DGGI staff at dozens of cotton shops and units of renowned yarn manufacturers located in Ludhiana, Sirsa, Hisar and Baddi.