Two held for fake VAT refund of Rs 48 lakh

THE Ludhiana Police have arrested two persons for fake refunds under the Value Added Tax (VAT) regime and have recovered Rs eight lakh from them.

Two more persons, who are employees of the Excise and Taxation Department, are also implicated in this case. Together they are accused of faking VAT refunds worth Rs 48 lakh.

According to the police, Harbans Lal and Kuldeep Singh received VAT refunds worth Rs 48 lakh on the basis of fake documents. Harbans Lal owns a woolen mill in the city. The police said Mukhpal Singh and Ranjit Singh, both employees of the Excise and Taxation Department, helped Harbans Lal and Kuldeep Singh in availing the fake VAT refunds.

Addressing a press conference here on Wednesday, SP (Detective) Gurpreet Singh Toor and Economic Offences Wing (EOW) In Charge Inspector Jaswinder Singh said the Division 5 police had registered two FIRs on the basis of complaint by the Assistant Excise and Taxation Commissioner (AETC) on July 21. While Harbans Lal and Kuldeep Singh have been arrested, the police have started searching for the remaining suspects.

The case was registered following an inquiry by the EOW of the Ludhiana Police. Further investigations are on in the case.