Illegal coal suppliers syndicate operating through bogus firm busted in Bihar

Patna: The commercial tax department has cracked down on syndicates that are illegally mining coal for firms in Bihar and Jharkhand, officials said.

The syndicate is trading through a bogus firm based in Madhubani 73 crores worth of tax loss 25 crores.

People who know that Madhubani-based counterfeit firm is the main conduit of illegal coal supply syndicate for Jharkhand, Bihar and other states, create a paper trail for officials in tax fraud.

The investigation revealed that a rural woman who had no information about the organization’s activities had a bogus firm.

“At the time of the investigation, the woman was living in the village of Madhubani and she had no knowledge of the agency named as the owner.

The investigation revealed that the syndicate was working as a good oil supply chain to send coal goods from Jharkhand, officials said. Officers and do fake paper trail.

Value Coal is sold by Madhubani Agency on paper 73 crore without any purchase showing the supply chain. Another official of the department said that these illegal coal stocks were being systematically supplied to 14 firms in Jharkhand, two in Bihar and one each in Uttar Pradesh, Maharashtra and West Bengal.

Coal attracts 11.6% of GST, as illegal coal suppliers follow such secret methods to produce e-way bills (documents required to be transported by consignors) and counterfeit invoicing by coal companies from one state to another.

An investigation carried out over the past several months has found 1,075 Bihar companies and 1,031 outside Bihar have illegally supplied coal, while a Raxal-based company has been identified and exported, tax authorities said. Goods. The dummy firm in Madhubani has been operating a re-route of illegal coal inventory from Jharkhand to various states, including Bihar, since November last year. This is a circular bill trading case, ”said another official.

Dr. Pratima, Commissioner and Secretary, Department of Commerce, said that, strict action will be taken against the institutions involved in the syndicate and an investigation is underway to ascertain the true Kingpin of the syndicate. “We are also investigating other passages and traders showing exports to prevent fraud and tax fraud,” he said. The commissioners said that the government would take punitive action against taxpayers and corporates.

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