ED exposes railway freight scam

By Admin

08 Jan, 2026

Introduction
The Enforcement Directorate has uncovered a major railway freight scam involving alleged misdeclaration of goods, large-scale GST evasion, and money laundering. The case highlights how manipulation within logistics and freight operations can cause significant losses to public revenue while generating illegal gains routed through complex financial channels.

ED action under PMLA
The Enforcement Directorate has provisionally attached properties worth Rs 2.67 crore in connection with the case under the Prevention of Money Laundering Act. The action targets a Guwahati-based logistics firm and its promoter following evidence of proceeds of crime generated through fraudulent practices in railway freight operations.

Assets attached in Gurugram
Among the key assets seized is a four-storey commercial building located in Gurugram. The property is owned by Vinayak Logistics India, Vinayak Logistics, and their promoter Pravesh Kabra. According to investigators, these assets were acquired using funds allegedly laundered through personal and business accounts.

CBI chargesheet and modus operandi
The ED’s move follows a chargesheet filed by the Central Bureau of Investigation, which accused the company and its promoter of misdeclaring freight commodities. By falsely classifying goods, the accused allegedly evaded railway freight charges and GST, leading to substantial losses to the exchequer while unfairly benefiting from lower transportation costs.

Trail of illicit proceeds
Investigators revealed that the manipulation enabled the siphoning of illegal gains amounting to Rs 16.15 crore. These funds were allegedly routed into personal accounts and subsequently used for acquiring properties, expanding businesses, and other financial activities aimed at concealing the origin of the money.

Ongoing investigation
The probe remains underway as authorities continue to trace additional assets and identify other individuals or entities involved in laundering the proceeds of crime. The case underscores the growing scrutiny on logistics and freight operations and sends a strong message against financial fraud linked to public infrastructure and taxation systems.

Conclusion
The railway freight scam exposed by the Enforcement Directorate highlights the importance of strict compliance, transparent reporting, and robust oversight in the logistics sector. As investigations deepen, further revelations may emerge, reinforcing the need for coordinated action among enforcement agencies to safeguard public revenue and deter economic offences.