ED set to probe money laundering in CGST Jhansi bribery case
LUCKNOW, Jan. 5 -- The Enforcement Directorate (ED) is set to enter the bribery case involving Central Goods & Services Tax (CGST) officials in Jhansi, including deputy commissioner Prabha Bhandari, with a likely focus on the money laundering angle linked to the alleged corruption network.
Sources said the ED has begun preliminary groundwork to initiate action under the Prevention of Money Laundering Act (PMLA), following revelations by the Central Bureau of Investigation (CBI) about a well-organised extortion racket operating within the CGST office. The agency is expected to examine whether bribe money collected from traders was laundered through benami properties, shell entities or layered financial transactions.
As part of its initial assessment, the ED has started gathering details of movable and immovable assets belonging to the arrested deputy commissioner and other officials allegedly involved in the racket. The focus will be on identifying the "proceeds of crime" and tracing the money trail to establish how the illicit funds were generated, parked and potentially legitimised.
The ED has sought documents, seizure records and investigation reports from the CBI, the CGST department and the income tax department, sources said. These include materials recovered during searches, digital evidence and financial records that may help establish links between bribery proceeds and asset creation.
The CBI had earlier uncovered a bribery and extortion mechanism in the Jhansi office, leading to the arrest of deputy commissioner Prabha and four others in connection with an alleged Rs.1.5 crore bribery case on December 31. Investigators found that a fixed commission structure was at the core of the racket, with intermediaries allegedly receiving a 10% cut of the bribe amount for facilitating illegal settlements of tax evasion cases....
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