Kanpur-based businessman Piyush Jain was arrested on charges of tax evasion on 27 December more than 40 hours after Central agencies raided his premises in what turned out to be arguably the biggest cash seizure in recent times. So far, 257 crore in cash, 250 kg silver, 25 kg of gold and nine drums of ‘sandal’ oil have been recovered from Jain besides over 300 keys and with the investigation still unfolding, more of his assets may be recovered.
Added to this, the incident has kicked up a row between the Samajwadi Party and Bharatiya Janata Party with each trying to prove that the man was affiliated to the rival party. Let’s take a look at who Jain is and what the controversy is all about:
Piyush Jain
Piyush Jain is a Kanpur-based perfume businessman. As per an India Today report, Jain used to conduct his business at Kanpur’s Ittarwali Gali and had offices in Kannauj, Kanpur and Mumbai.
According to another India Today report, Jain’s grandfather, Phool Chand Jain, was in the business of printing clothes. He has a brother named Ambareesh. Both have a Master’s Degree in chemistry from Kanpur University.
A neighbour said Jain used to work as a salesman in a company in Mumbai. Being well-versed in chemistry, he started making compounds for soap, detergents, etc. As Piyush grew up, he took over the family business and also started making soap and detergent compounds. From there, he advanced to making edible compounds for gutkha and tobacco products. Gradually, he started his perfume trade. Jain moved from Kannauj to Kanpur as his business expanded. He now has a booming business in Mumbai and Gujarat.
He has three children — a daughter, Nilansha, who is married and a pilot, and two sons Pratyush and Priyansh.
According to a Business Standard report, Jain has links across 50 countries. “He has a lab at his premises where he used to ‘invent’ different compounds. Once the compound was ready he used to sell it to his clients across the world and in India. His clients are manufacturers of tobacco, soaps, perfumes and likewise products. He used to sell compounds at exorbitant rates.”
Financial intelligence teams probing the case said the chemicals recovered from his house were brought from Iran, France, Germany, Australia, Japan, Kuwait, Indonesia, Nepal, China, UAE and Tehran.
How he made so much money
The money was allegedly generated through the dispatch of goods via fake invoices and without e-way bills by a goods transporter. The Directorate General of GST Intelligence has seized more than 200 fake invoices from the premises they raided.
The charges against him
Jain has been booked under Section 132A of CGST.
How he was found out
According to a News18 report, the entire process begun when DGGI took action in a matter related to non-payment of GST of tobacco and pan masala loaded in four trucks. The trucks belonged to Ganpati Road Carrier and through this, the DGGI officials reached Shikhar Pan Masala factory where officials recovered more than 200 fake invoices in the name of Ganpati Road Carrier.
During the search, the makers of Shikhar Gutkha admitted that they owed tax and deposited Rs 3.09 crore. Meanwhile, the name of another partner of Shikhar Gutkha came to the fore — Odocam Industries — and here’s when the story of Jain started.
Jain is the owner of Odocam Industries and officials soon raided the company’s registered address in Kanpur, which was Jain’s house in Anandpuri, from where officials recovered the ill-gotten gains.
What has been uncovered
According to the DGGI’s Additional Director General Vivek Prasad, “This is the biggest ever seizure of cash by Central Board of Indirect Taxes and Customs officials.”
Besides the cash, gold and silver, officials also have recovered:
Documents relating to 16 expensive properties, four of those are in Kanpur, seven in Kanauj, two in Mumbai and one in Delhi.Over 18 lockers in a cellar at Piyush Jain’s ancestral house in Kanauj and over 300 keys which officials are trying to use to open the lockers.Jain has around 40 shell companies, including two in the West Asia.Besides houses, a factory, an office, a cold store, and a petrol pump have been linked to Jain.
What happened next
Jain was sent to 14 days of judicial custody by a Kanpur court.
With input from agencies
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