5 garment factories in Rs. 310 m VAT fraud

Five garments factories have defrauded more than Rs. 310 million in VAT repayments, OIC of the Police Commercial Crime Division Perumal Vishwanathan has claimed. Giving evidence on August 07th before the commission that probes VAT frauds, he has said that this was in addition to the earlier exposed Rs. 4,000 million swindle by 20 companies. Mr. Vishwanathan has said that KIL Apparel, Randunu Garments, Fashion Garments, DTN Garments and Supreme Garments have been paid back the Rs. 310 m through 16 cheques. This had been done even before two months have elapsed since they had begun commercial operations, he has alleged. An accountant hired from the outside had been involved in some of these payments, who had done so at the instigation of the main suspect in these frauds, S. Jayatilake. In addition to the two main suspects, another suspect named Carmel Kudubdeen, presently out of the country, had obtained the VAT dues to Bhutani Exports by unlawful means, the OIC had alleged.