Businessman Piyush Jain Sent To 14-Day Judicial Custody After Tax Raids Recover Rs 194.45 Cr Cash

The search proceeding at Kannauj is likely to continue till evening, DGGI informed adding that a total of Rs 194.45 cash was recovered so far.

New Delhi: Kanpur court on Monday sent businessman Piyush Jain to 14 days in judicial custody after raids at his residence led to the recovery of over Rs 194.45 crores of cash, 23 kg gold, and 600 kg sandalwood oil.

This comes after the Directorate General of GST Intelligence (DGGI) Ahmedabad arrested perfume businessman Piyush Jain, promoter of Odochem Industries, on Sunday under Section 67 of the CGST Act as it recovered unaccounted cash, raw and finished materials from him.

According to the Directorate General of GST Intelligence (DGGI), Piyush Jain accepted that the cash recovered from the residential premises is related to the sale of goods without payment of GST.

DGGI stated that “in view of the overwhelming evidence available on record indicating large-scale evasion of GST by Odochem Industries in Kannauj”, officers searched the factory premises which is in progress, news agency ANI reported.

During the searches at Kannauj, the officers have been able to recover an amount of about Rs 17 crores in cash, it informed.

In addition, recovery of approximately 23 kgs of gold and huge unaccounted raw materials used in the manufacture of perfumery compounds, including more than 600 kgs of sandalwood oil hidden in underground storage, having a market value of about Rs 6 crores, have been made.

The search proceeding at Kannauj is likely to continue till evening, DGGI informed, adding that a total of Rs 194.45 cash was recovered so far.

During the raid in residential and factory premises of Odochem Industries in Kannauj, approximately 23 kgs of gold was recovered. Since the gold so recovered is having foreign markings, the Directorate of Revenue Intelligence (DRI) is being roped in for necessary investigations, DGGI stated, as reported by ANI.

A joint team of DGGI and Local Central GST had recovered Rs 5 crores from Piyush Jain's factory in Kannauj on Sunday ahead of his arrest, official sources told ANI. Another Rs 5 crore was recovered from the residence of Jain in Kannauj.

Biggest Cash Seizure In History Of CBIC

Previously, the officials had told the news agency that Piyush Jain was giving unconvincing explanations about the cash recovery.

He had claimed that this “cash belongs to his relatives and brothers.” He took names of some of his relatives and brothers, but when investigating officers questioned the relatives whose names were taken, they denied Jain’s claims, reported ANI.

Officials said that no one from Piyush Jain’s relatives came forward to accept his claim. Jain’s brothers have also denied the claim of Piyush Jain.

Officials have been trying to get the details of huge cash recovered from the promoter of Odochem Industries.

“We want to know the source of such huge cash. Why such a huge amount of cash was collected, where was this cash supposed to be used, from where this cash came. Was the 143, Anandpuri, Kanpur, where Rs 177.45 crore cash was recovered a collection centre of Perfume sale or it was used for some other purpose. The investigation will be on until it reaches its logical conclusion,” an official said.

This is the biggest cash seizure in the history of the Central Board of Indirect Taxes and Customs, the apex body of the investigation agency Directorate General of GST Intelligence (DGGI) which conducted the search, ANI reported.

(With Agency Inputs)