ED Files Chargesheet in GST Fraud Investigation

Posted on    18 September 2023

The Enforcement Directorate (ED) in Lucknow has filed a prosecution complaint in connection with a GST (Goods and Services Tax) fraud allegedly committed by Ashok Kumar Singh and his wife Sheela Singh, who are based in Bhadohi. Ashok Kumar Singh is also known as the national president of the Samaj Vikas Kranti Party and had contested the Lok Sabha election from Jaunpur in 2019.

According to the ED, during their investigation, they uncovered shell companies registered in the name of Ashok Kumar Singh and his wife, including one named "Sheela Sales Corp." The accused individuals are alleged to have shown a business turnover of Rs 334 crore through fake transactions and receipts. Additionally, they are accused of creating fake GST invoices worth Rs 65 crore. The investigation further revealed that Ashok Kumar Singh issued fake bills to over 300 companies.


Sheela Singh is identified as a director in Sales Corporation, as well as in M/s Chandan Sagar Sales Pvt. Ltd. and M/s Chandan Sagar Construction Pvt. Ltd. The ED has determined that all these entities were involved in fraudulent trading activities. They would purchase goods from one party and then sell them to other parties, making a profit in the process.

The bogus firms created by Ashok Kumar Singh reportedly sold the fake goods of M/s Sheela Sales Corporation to several companies, including M/s Chandansagar Sales Pvt. Ltd, M/s Chandansagar Construction Pvt. Ltd, M/s Sheela Sales Pvt. Ltd, M/s Struteco Infrastructure Pvt. Ltd, M/s Nitin Khimraj Kanungo, and M/s Chandan Enterprises.

It's important to note that these allegations are based on the investigation conducted by the Enforcement Directorate, and individuals are considered innocent until proven guilty in a court of law. Legal proceedings will likely follow to determine the outcome of this case.

views  1290