Delhi South CGST Commissionerate busts fake invoicing racket of Rs 611 cr
Feb 24, 2022
New Delhi [India], February 24 : Delhi South CGST Commissionerate busted a fake invoicing racket and arrested three persons on Wednesday.
According to the Ministry of Finance, a specific intelligence was developed by the officers of Delhi South CGST Commissionerate concerning certain bogus firms that were created solely for the purpose of generating fake invoices and passing ineligible input tax credit along the chain.
Searches and inspections were conducted across Delhi, unearthing a cartel running 54 bogus firms that were engaged in fake invoicing and circular trading.
Incriminating documents such as rubber stamps and letterheads of various firms, mobile phones, laptops etc have been seized from the search premises.
The preliminary inquiry has revealed fake invoicing of around Rs 611 crores and tax evasion of over Rs 38.5 crores. The members of the cartel in their confessional statements have accepted their roles in managing these bogus firms.
The persons behind these bogus firms hatched the conspiracy to defraud the government and committed offences specified under various sections of CGST Act 2017 which are cognizable and nonbailable.
Three key persons of the cartel namely Ankit Gupta, the mastermind managing these bogus firms and two of his accomplices Rabiendra Singh and Rajendra Singh were arrested on Wednesday. The accused were produced before the Duty Magistrate following which they have been remanded to judicial custody for 14 days.
Further investigation is in progress.
