CGST officers arrest key associate of accused operating 46 fake firms to help businesses evade tax
Feb 09, 2021
New Delhi [India], February 9 : The Central Goods and Services Tax (CGST) officers, Delhi East on Tuesday arrested a key associate of the accused person who was running a multi-layered network of 46 fake firms and passing on fake input tax credit (ITC) worth Rs 82.23 crore.
According to an official statement of CGST Commissionerate, the accused Arvind Kumar's associate Kamal Singh was arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate today, who remanded him to judicial custody of 14 days till February 23.
The accused Arvind Kumar was arrested on January 17 and is in judicial custody, the statement said.
"Through the use of extensive data analytics, officers of Delhi East GST were able to identify and unravel a network of 46 fake firms which were operating since 2017 and had passed on fake ITC to multiple beneficiaries. The investigation conducted revealed that the fictitious firms were being controlled by Arvind Kumar and his associates. He was arrested on January 17, 2021 and is in judicial custody till date," it said.
Kumar's key associate Kamal Singh alias "Kamal Solanki" who had been absconding for the past one month has also been apprehended.
"Singh has confessed to have been involved in the racket of fake billing through which fake invoices of Rs 541.13 crore were raised involving fake ITC of Rs 82.23 crore, which is expected to increase as the investigation progresses," it said.
This is the second arrest made in the investigation.
It is pertinent to mention here that since the inception of GST Central Tax, Delhi zone has made 21 arrests in various cases involving GST evasion amounting to more than Rs 3791.65 crore, the statement said.
