DGGI arrests UP trader Piyush Jain after cash recovery of ₹257 cr; political links alleged

Kanpur-based businessman Piyush Jain, promoter of Odochem Industries, was arrested by the Directorate General of GST Intelligence (DGGI) on Sunday on charges of tax evasion. Jain was booked under Section 69 of the Central Goods and Services Tax (CGST) Act after a cash recovery of Rs 187.47 crore from his factory in Kannauj and residence in Kanpur.

The DGGI had also recovered unaccounted raw material and finished products worth crores. Unaccounted sandalwood oil and perfumes worth crores were seized from Piyush's premises on day one of the searches. Republic has now learned that the total cash recovery from the perfume trader has reached Rs 257 crore, the biggest seizure in the history of the Central Board Of Direct Taxes and Customs.

When asked about the source of money, Piyush Jain reportedly told officials that he sold 400kg of his ancestral gold. However, when asked to which jeweller or company the gold was sold to, he had no substantial answer.

Piyush Jain had 'political links'

After Piyush Jain, four tobacco manufacturers are under the DGGI lens, who have financial dealings with the perfume trader. According to sources, the tobacco companies were making payments to Piyush in cash, who in return, was evading taxes. Two hawala operators are also under the lens as the recovered cash was properly packed as if it was meant to be delivered to specific people.

According to sources, Jain was unable to provide a satisfactory response to the questions regarding the heavy amount of cash in his possession.

The perfume trader was also quizzed about three individuals with political backgrounds with whom he was in continuous contact for the last 4 months. Jain will be presented before the Kanpur today.