The Indian Government freezes account of one of the leading textile companies, having a turnover of more than Rs. 2,000 crore per annum.
As per a media report, the step has been taken on the request of Saudi Arabia Government. Meanwhile, the media hasn’t been told about the fault of the company or why the account was frozen.
The matter is under investigation and more details are awaited.
Prior to this, around 67 accounts of exporters (from various trades) were also frozen. The Enforcement Directorate has been investigating these accounts. It is worth noting that few exporters took the matter to court.
It is pertinent to mention here that, as per the report, such exporters may be involved in unethical practices of Hawala. (Hawala works by transferring money without actually moving it.)
Occasionally, such cases come up where exporters are also involved in frauds related to GST. Just a month back, it was reported that there are 1,377 exporters who claimed Rs. 1,875 crore IGST refund ‘untraceable’.
