GST evasion: More cash, gold recovered from businessman

After Rs 177 crore recovery, taxmen dig out 23 kg gold, Rs17 cr from gunny bags in businessman's property

Kanpur businessman Peeyush Jain was arrested on Sunday, after Rs 177 crore was recovered from his premises, over alleged evasion of GST payments

Kanpur businessman Peeyush Jain. Credit: PTI Photo

Four days after recovering a whopping Rs 177.45 crore in cash from the residence of Kanpur businessman Peeyush Jain, the Directorate General of Goods and Services Tax Intelligence (DGGI), Zonal Unit, Ahmedabad on Monday said it has further recovered 23 kilograms of gold and Rs 17 crore, as well as sandalwood oil, from Jain's Kannauj house, which were reportedly concealed in gunny bags and kept in underground storage.

Meanwhile, Jain was sent to jail in judicial custody on Monday after he was produced before a local court. The DGGI officers had arrested him on Sunday on charges of "commission of offences prescribed under section 132 of the CGST."

The section deals with false invoices, issuing invoices without supplying goods or services, collecting GST but not submitting it to the government within the stipulated time.

In a press note, the DGGI stated that the residential and factory premises of Odochem Industries — of which Jain is a promoter — at Kannauj were also searched. During the search, officers reportedly found Rs 17 crore in cash and recovered about 23 kgs of gold. Besides, the note stated, "huge unaccounted raw materials used in manufacture of perfumery compounds, including more than 600 kgs of sandalwood oil hidden in an underground storage, having a market value of Rs 6 crore, have been made."

Also Read — ED to lodge PMLA case against Kanpur businessman Piyush Jain

Officials said that since the gold bricks have foreign markings, the Directorate of Revenue Intelligence is being roped in for necessary investigations. Sources said that cases are likely to be registered under the Customs Act for importing gold and the Forest Act for storing sandalwood oil.

Earlier, based on "reliable intelligence" the DGGI officials had raided Jain's residence in Anandpuri, Kanpur and recovered Rs 177.45 crore cash, which was unaccounted for. The agency stated that it was "the biggest ever seizure of cash."

DGGI officials have jurisdiction all over the country. The officials had first raided the factory of manufacturers of Shikhar brand of pan masala and tobacco products, their transporter Ganpati Road Carriers and Odochem Industries, suppliers of perfumery compounds at Kanpur and Kannauj.

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