Politics

Proceeds of the crime of over Rs.1000 cr of cyber and crypto assets frauds attached: Govt informs Lok Sabha

Assets amounting to Rs 289.28 crore have been seized under section 37A of the Foreign Exchange Management Act, 1999

December 12, 2022

ED investigating several cases related to cyber and crypto assets fraud

On Monday the Central government informed the Lok Sabha that proceeds of crime of more than Rs.1000 crore related to cyber and crypto assets frauds have been attached under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). Besides, estimated GST evasion by such companies was near Rs.22,936 crore between April 2019 and November 2022.

Ministry of Finance, in a written reply, said that the Enforcement Directorate is investigating several cases related to cyber and crypto assets frauds wherein online gaming, etc. have been used for committing fraud and siphoning the proceeds generated thereof.

“In these cases, as on December 6, 2022, proceeds of crime of more than Rs.1000 crore have been attached/ seized/ freezed under the provisions of the Prevention of Money Laundering Act, 2002 (PMLA). Also, 10 Prosecution Complaints (PCs) including 02 supplementary PCs have been filed before the Special Court, PMLA,” it said.

GST evasion of Rs.23,000 Cr by gaming companies

Furthermore, it said that in so far as evasion of Goods and Services Tax (GST) is concerned, CBIC formations have initiated investigations against some gaming companies (including Online gaming companies) located in India as well as abroad. The estimated evasion of GST by these companies works out to Rs.22,936 crore, relating to the period April 2019 to November 2022.

Minister of State, Ministry of Finance, Pankaj Chaudhary said, “Assets amounting to Rs.289.28 crore have been seized under section 37A of Foreign Exchange Management Act, 1999.”

On a question of whether the government proposes to ban such gaming companies, the reply said, “Necessary action as per provisions of law is taken against such companies, as mentioned above.”

On a question of whether online gaming companies are not paying income tax and whether the Income Tax Department has issued notices to many gaming companies, the reply said, “The information regarding online gaming companies, which are not paying income tax and where the Income-tax Department has issued notices to such gaming companies, is not available, since no specific identification code for online gaming entities is available in Income Tax Return. The disclosure of information about specific taxpayers is prohibited except as provided under section 138 of the Income Tax Act, 1961.”

[With Inputs from IANS]

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