3 held for fraudulent input tax credits claims of Rs 557 cr, creating 246 fake entities
Jul 27, 2023
New Delhi [India], July 27 : The Meerut Zonal Unit of the Directorate General of GST Intelligence (DGGI) unearthed two major fake billing rackets involving 246 shell entities, which have passed on fraudulent Input Tax credits (ITCs) of Rs 557 crore, said officials.
In this matter to date, three key operatives have been arrested. One of these rackets had close nexus with fake firms unearthed by Noida Police in June 2023, the officials added.
"Taking a cue from the Noida Police case and based on extensive data mining coupled with human intelligence, 2 major syndicates, being operated by masterminds Anand Kumar and Ajay Kumar, involved in creating and operating fake shell entities have been busted," said officials.
Several documents related to fake firms like forged stamps, debit/credit cards, chequebooks, Aadhaar card, PAN card, etc. were seized from the secret offices of Anand Kumar and Ajay Kumar at Adhyapak Nagar and Paschimpuri, Delhi respectively.
This indicates close nexus of these masterminds with brokers/agents which specialise in procuring IDs of poor, needy and susceptible people in lieu of petty monetary benefits. Both the masterminds have been arrested, said officials.
Forensic examination of seized laptops and mobile phones led to retrieval of ledgers, invoices, e-way bills, etc. being maintained in Tally/BG systems software.
Apart from this, bundles of WhatsApp chat/ voice messages evidencing the transactions of fake GST bills and illegal cash flow have also been retrieved. The initial probe has also indicated the involvement of bank officials in opening bank accounts in the name of fake firms.
These two syndicates have issued invoices having taxable turnover of Rs 3,142 crore involving ITC of Rs 557 crore through 246 fake firms to more than 1,500 beneficiary firms.
Major beneficiary firms are located in Delhi and others are spread across 26 other states. Vikram Jain, Proprietor of one such beneficiary firm, has also been arrested during the investigation.
All three accused were produced before Economic Offence Court, Meerut on Wednesday and have been remanded for judicial custody till August 8, 2023.
