ED Files First Charge Sheet in Mizoram Over Rs 3.41 Crore Government Subsidy Fraud

The Enforcement Directorate (ED) filed its first charge sheet before a special court in Aizawl on March 30, targeting an alleged government subsidy fraud involving a non-operational coke production unit in Mizoram.

The charge sheet was filed under the Prevention of Money Laundering Act (PMLA), 2002, before the Special PMLA Court in Aizawl against Ravi Gulgulia and others.

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According to the ED, Ravi Gulgulia, in criminal conspiracy with Margaret M. Varte, set up a coke production unit called M/s Mizo Carbon Products (MCP) near Aizawl with the intent of fraudulently claiming Central government subsidies.

Investigators found that the unit was non-operational during the period for which subsidies were claimed. Fabricated documents — including fictitious production records, transportation logs, raw material procurement files, and diesel consumption reports — were allegedly prepared and submitted to the government.

Using these forged documents, the accused allegedly claimed Central Transport Subsidy (CTS) worth nearly Rs 2.47 crore and Central Capital Investment Subsidy (CCIS) worth Rs 93.90 lakh — bringing the total proceeds of crime to approximately Rs 3.41 crore.

The ED found that once the subsidy amounts were received, the funds were quickly diverted and routed through several companies and bank accounts linked to Gulgulia.

These included Ravi Gulgulia and Sons (HUF), M/s Shivratri Commodities Private Limited, M/s Thirdwave Suppliers Private Limited, M/s Gulgulia Trade Corporation, and M/s Yash Marketing India.

The ED launched its money laundering probe based on an FIR originally registered by Mizoram Police's Anti Corruption Bureau (ACB) under sections of the Indian Penal Code, 1860, and the Prevention of Corruption Act, 1988.

The Mizoram Police's ACB had filed its own charge sheet before a court on May 30, 2019. The ED's charge sheet on March 30 marks the agency's first such filing before a court in Mizoram.