KOCHI: When they left their homes for Ernakulam on Wednesday morning, the officers of the intelligence wing of the State GST (SGST) department thought they were going for a two-day training at the private college where they were told to gather. Similarly, training was on the minds of officers of the SGST’s audit wing, who were told to assemble at the Kerala Institute of Local Administration (KILA) in Thrissur around the same time.
However, the officers, numbering around 700, gathered at the two locations and were in for a surprise. They were about to be part of perhaps one of the largest raids ever conducted by the SGST department in Kerala.
Code named ‘Torre del Oro’ (Tower of Gold)—after a monument in Seville, Spain—the raids by the SGST officers on 73 locations linked to jewellers in Thrissur led to the seizure of 108kg of gold over tax evasion. The raids, which lasted until Thursday afternoon, were planned and executed in complete secrecy, with only four senior officers kept in the loop.
“After all the officials gathered at the college in Ernakulam and KILA in Thrissur, they were told that a tour was arranged as part of the training. Believing that they were headed for a tour, the officials got into hired tourist buses and were dropped off at places where the raids were planned. The officials were informed about the raids only after reaching the locations. They were also told not to use their mobile phones so that no information is leaked,” a top official who supervised the raids told TNIE.
The search was conducted after much preparation and planning to ensure that there were no loose ends. “We have been conducting a preliminary inquiry into tax evasion by people engaged in gold jewellery manufacturing and its sale in Thrissur for the past seven months. The raids were carried out within a 1km radius of Thrissur city. As thorough preparatory work was carried out, we did not want anyone to leak information about the operation. Only four senior officers knew about it. All others were kept in the dark,” he said.
The raids were conducted on godowns, manufacturing units, shops and residences of 35 jewellers in Thrissur. “We selected Thrissur as it is the state's hub of gold jewellery manufacturing. Four jewellers were slapped with a fine of Rs 5.03 crore for GST evasion,” he said.
SGST dept exaggerating figures: Traders’ assn
“We collected documents and other details during the raid. Notices will be served on all jewellers suspected to have involved in tax evasion. It would take a few weeks to go through the seized documents to get a clear picture of tax evasion,” the officer said.
Meanwhile, the Kerala Gold and Silver Merchants Association criticised the raid and said the SGST department is exaggerating the seizure figures. “SGST officials conducted the raids after asking the jewellers to switch off CCTV cameras and mobile phones of employees. This is against the liberty of employees. At manufacturing units, gold is found in blocks, powder and in thread forms to make ornaments. However, the officials weighed the raw forms of gold, instead of ornaments, to claim evasion of tax. The actual method is to weigh the entire jewellery,” the association said in a statement.
The association members also alleged that raids were held on the premises of jewellers who have GST registration and file it regularly. “It is a planned move intended to tarnish the jewellery industry in the state. Though large quantities of gold are being smuggled into the state and converted to jewellery illegally, no corrective steps have been initiated till now. On the other hand, jewellers who pay huge amounts as taxes are being targeted,” the association stated.