GST department finds irregularities worth over Rs 1000 cr at scrap shops in Kerala in biggest-ever raid

KOCHI: In their biggest-ever inspection, GST department conducted raids in more than 100 scrap shops in seven districts including Ernakulam, Palakkad, Thiruvananthapuram and Malappuram. It has been found that crores of money has been laundered by creating fake bills and forming shell companies. The investigation is called Operation Palmtree.

The inspection was conducted by deputing more than three hundred officials. During the preliminary inspection, it was found that fake bills worth Rs. 500 crores were produced. The inspection started at 5 am on Thursday. The GST officials got the information about this during the inspection conducted in the last months. It was then decided to conduct a state-wide inspection simultaneously. At the same time, the GST team reached the Mary Matha Traders godown in Ernakulam's Kakkanadu and also the owner's house. The raid lasted four hours.

Before the raid, more than 300 officers had camped in Kochi for three days. The inspection was carried out in coordination with senior officials from other states and central GST. Inspection was also conducted in various institutions in Palakkad and Ongallur. Illegal sales were detected using fake GST numbers. Information related to transactions conducted by them in other states was also found during the inspection. The GST department estimates that the evasion will exceed Rs 1000 crores.