GST Raid Uncovers Illegal Storage of Clothes in Farmers Cold Storage
On Monday in Bengaluru, GST officials carried out a raid at a cold storage facility in Poojenahalli near Devanahalli. The storage unit belongs to KAPPEC (Karnataka State Agricultural Produce Processing and Export Corporation). During the raid, officials were surprised to find that instead of fruits and vegetables, the cold storage was being used to store four truckloads of ready-made clothes illegally. The officials seized the garments and sealed the entire storage unit.
The team also discovered a separate room where masala powders were stored. Initially, that room was sealed as well. Later, the company showed proper bills proving that taxes had been paid for the masala powders, so the process to release those goods has started.
However, the company managing the cold storage, Fiza Agro Ventures Private Limited, has not been able to show any bills for the readymade clothes. Because of this, officials suspect that there may be a large tax evasion scam involved.
This cold storage facility was originally built by KAPPEC to help farmers in the Devanahalli area. Farmers were supposed to use it to store and process their fruits and vegetables safely. KAPPEC had given the responsibility of managing the facility to Fiza Agro Ventures, which is owned by former MLC B.M. Farook.
According to KAPPEC, the company did not follow the agreement and also failed to pay rent for the facility. Because of this, KAPPEC had already forfeited their security deposit and terminated the contract. But the company did not respond to the notices and continued to occupy the cold storage.
Later, KAPPEC received information that non-agricultural activities were taking place inside the facility. They informed the Commercial Tax Department, which then conducted the raid and uncovered the illegal storage.
KAPPEC Managing Director C.N. Shivaprakash said the company ignored all notices and refused to vacate the property even after the contract was cancelled. He added that the cold storage was built only for storing and processing farmers’ produce, not for storing clothes or other goods.
He also said that once the GST investigation is completed, KAPPEC will take back full control of the cold storage facility.