Lucknow: The Enforcement Directorate (ED) is set to register a money laundering case against three Central GST (CGST) officers arrested by the CBI in Jhansi on charges of accepting bribes from traders. The agency will initiate proceedings under the Prevention of Money Laundering Act (PMLA) and is expected to attach their movable and immovable assets as part of the investigation.
The ED’s action will be based on the CBI FIR registered in the bribery case. Officials familiar with the development said the registration of the Enforcement Case Information Report (ECIR) is likely in the coming days, following which the financial trail and assets linked to the accused officers will be examined.
CBI seizure triggers ED probe
Sources said the ED swung into action after the CBI unearthed a bribery syndicate within the CGST department during raids conducted on December 31. The CBI had recovered ₹90 lakh in cash from premises linked to the arrested officers, raising suspicion of proceeds of crime generated through illegal gratification.
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Based on these findings, the ED has decided to launch a parallel probe to identify the source of funds, layering of money, and potential benami assets acquired through alleged corrupt practices.
Assets likely to be attached
As part of the PMLA investigation, the ED will scrutinise bank accounts, cash transactions, properties, investments and other high-value assets linked to the accused officers. Officials indicated that attachment proceedings could follow if the assets are found to be disproportionate to known sources of income.
The probe will also examine whether the alleged bribe money was routed through intermediaries or converted into assets to conceal its origin.
Role of senior officers under scanner
Meanwhile, the CBI is also probing the possible involvement of two senior CGST officers posted in Kanpur. According to sources, the agency is analysing call records and communication details between the arrested Jhansi officers and senior officials following raids conducted at trader premises on December 18.
Investigators are examining why inspection and raid reports were allegedly delayed and not forwarded to the headquarters for several days, a lapse that could indicate procedural manipulation. The two senior officers may be summoned for questioning as the probe progresses.
Wider network being examined
The investigation has suggested the existence of an organised network in which tax liabilities of certain firms were allegedly reduced through illegal settlements in exchange for bribes. Documents seized during searches reportedly indicate that files related to tax assessments and penalties were retained outside official premises.
Officials said the ED will also look into whether the proceeds of crime were generated through systematic abuse of official position, making the case fit for prosecution under PMLA.
Departmental impact
Following the arrests, administrative activity at the CGST office in Jhansi has been impacted, with several enforcement operations reportedly put on hold. The case has caused unease within the department, prompting internal reviews of past tax relief and settlement orders passed by the accused officials.
Legal process underway
While the CBI continues its criminal investigation into bribery and corruption, the ED’s entry adds a financial crime dimension to the case. If established, money laundering charges could lead to stricter penalties, prolonged trials and confiscation of assets.
The case is expected to widen in scope as both agencies pursue parallel investigations into one of the most significant corruption scandals involving tax officials in the region in recent years.
