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Six charged over £11m carbon credit fraud

01/10/2013

Ms Jaswant Narwal, Deputy Head of Fraud at the Crown Prosecution Service, said: "Following a thorough investigation by Kent Police, the CPS has authorised charges against six men in connection with an alleged carbon credit fraud which cost the public revenue in the region of £11m.

"It is alleged that between 1 January and 31 July 2009, Narinder Chada, Gurmail Dosanjh, Sukhdev Singh and Dhanvinder Basra cheated the public revenue by creating a chain of bogus companies which traded in carbon credits for the purpose of committing a fraud on the VAT system. The defendants are accused of using an MTIC style fraud to give the appearance of legitimate trading, allowing the companies to reclaim VAT paid out on purchases of credits along the fraudulent chain.

"Each of the four men is charged with one count of conspiracy to cheat the public revenue, contrary to section 1 of the Criminal Law Act 1977.

"They, along with Daniel Andrew Barrs and Daniel Barrs, are also charged with money laundering, contrary to section 327 of the Proceeds of Crime Act 2002, contrary to section 1(1) of the Criminal Law Act 1977.

"This decision to prosecute was taken in accordance with the Code for Crown Prosecutors. We have determined that there is a realistic prospect of conviction and that a prosecution is in the public interest.

"All individuals will appear before Westminster Magistrates' Court tomorrow.

"The defendants are now the subject of criminal proceedings and have the right to a fair trial. It is extremely important that nothing should be reported which could in any way prejudice these proceedings."

Background:

During 1997, in Kyoto, Japan, a protocol to the United Nations Framework Convention on Climate Change (UNFCC) was initially adopted for use. This is commonly known as the Kyoto Protocol. The purpose of the protocol is to reduce Green House Gas (GHG) emissions. The protocol allows industrialized nations to meet their GHG obligations by buying reduction credits from other countries. In essence, it means that if a country cannot meet its GHG reduction target, it can buy credits from other countries that have credits to spare.

On 30 July 2009, the UK Government announced its decision to make carbon emission trading 'zero rated' for VAT purposes, making it impossible to claim VAT on the sale of carbon credits in the UK. 

Ends

Notes to Editors

  1. For media enquiries call the CPS Press Office on 020 3357 0906; Out of Hours Pager 07699 781 926
  2. The CPS consists of 13 Areas in total, each headed by a Chief Crown Prosecutor (CCP). In addition, there are four national casework divisions: Central Fraud, Welfare Rural & Health, Special Crime & Counter Terrorism and Organised Crime. A 'virtual' 14th Area is CPS Direct which provides charging decisions to all police forces and other investigators across England and Wales - it operates twenty-four hours, seven days a week, 365 days a year.
  3. At 31 March 2013 we employed a workforce of approximately 6840 staff (full time equivalent), including around 2350 prosecutors and 4110 caseworkers and administrators. Further information can be found on our website:  www.cps.gov.uk.
  4. The CPS, together with ACPO and media representatives, has developed a Protocol for the release of prosecution material to the media. This sets out the type of prosecution material that will normally be released, or considered for release, together with the factors we will take into account when considering requests. Read the Protocol for the release of prosecution material to the media.