ED Attaches ₹17.16 Crore Worth Properties in Haryana VAT Scam Case.

Headnote:

The Directorate of Enforcement (ED), Chandigarh Zonal Office, has issued a Provisional Attachment Order attaching 37 immovable properties worth approximately ₹17.16 crore in connection with a large-scale VAT scam involving fraudulent refund claims based on bogus C-Forms. The attached properties belong to Padam Bansal, Mahesh Bansal, and their family members.

Background:

1. ED initiated investigation based on multiple FIRs registered by the Haryana Police in Sirsa District under various provisions of the Indian Penal Code, 1860.
2. The FIRs alleged that several firms fraudulently claimed VAT refunds from the Excise & Taxation Department, Sirsa, by submitting bogus C-Forms.
3. The case relates to a large-scale tax fraud causing substantial loss to the State exchequer.

Findings of ED Investigation

1. ED investigation under the PMLA, 2002 revealed that a syndicate led by Mahesh Bansal and Padam Bansal, along with their associates, incorporated multiple firms in the names of poor and unsuspecting individuals.
2. The accused persons allegedly:
3. Operated bank accounts of these firms to conduct fraudulent transactions
4. Claimed bogus interstate sales using fake C-Forms
5. Acted in connivance with officials of the Excise & Taxation Department, Sirsa
6. Fraudulent VAT refunds amounting to approximately ₹4.41 crore were obtained.
7. The total loss caused to the Government exchequer is estimated at ₹43.65 crore, comprising:
8. Due tax: ₹20.01 crore (approx.)
9. Interest: ₹8.91 crore (approx.)
10. Penalty: ₹17.34 crore (approx.)
11. Less: Input Tax Credit (ITC) allowed to the tune of ₹7.02 crore (approx.)

Attachment of Properties

1. ED investigation further revealed that the fraudulently obtained refunds were:
2. Diverted to accounts of private firms controlled by Padam Bansal and Mahesh Bansal
3. Utilised for acquiring assets in their own names and in the names of their family members
4. Accordingly, ED issued PAO No. 05/2025, attaching:
5. 37 immovable properties
6. Total value: approximately ₹17.16 crore
7. Owners: Padam Bansal, Mahesh Bansal, and their family members

Status of Investigation:

1. Further investigation is ongoing with respect to:
2. The FIRs registered in Sirsa District
3. Other FIRs registered across different districts of Haryana in connection with the VAT scam
4. ED continues to trace additional Proceeds of Crime and identify the entire network of beneficiaries involved in the offence.