DGGI arrests director of solar power company in input tax credit fraud case
Jul 23, 2021
By Shailesh Yadav
New Delhi [India], July 23 : The Delhi zonal unit of Directorate General of GST Intelligence (DGGI) has arrested the director and chief financial officer (CFO) of Urja Global Limited, a listed company on BSE and NSE, for allegedly fraudulently availing input tax credit (ITC) of Rs 72 crore, sources told ANI.
Krishan Kumar Bansal, Director of Microlyte and CFO of Urja Global Limited, Yogesh Goyal, Director of Urja Global Limited and Amit Dua, Director of NYX India were arrested on Friday for "knowingly committing offences" under various sections of CGST Act 2017.
They were arrested and remanded to judicial custody of 14 days by a local court in Delhi.
Sources told ANI that searches were conducted in Delhi and Chennai on July 20.
During the investigation, it came out that it was a case of passing on of "inadmissible" input tax credit (ITC) of Rs 72 crore through goods and service-less invoices of about Rs 350 crore.
Sources said the modus operandi involved mixing of ITC on goods and services and finally unbundling and passing off "ineligible ITC separately on supply of goods and services".
"Such ineligible ITC of services was accumulated and finally consumed on the composite supply of scrips to different importers located across the country," a source said.
The investigation revealed that Jetibai Gransons Services Pvt Ltd has received solar panels, inverter and batteries from Microlyte Energy (P) Ltd (MEPL) of worth Rs 232 crores involving ITC of Rs 55 crore.
Urja Global Ltd, in turn, has shown the line purchases of Rs 83.46 crore involving ITC of Rs 18.5 crore, either from suppliers who do not have any inward purchases or from suppliers who are cancelled or non-existent.
Jetibai Gransons Services has further supplied goods to NYX Industry India (P) Ltd and services to RIBS India, Chennai of Rs 210 crore involving ITC of Rs 38 crore.
Sources said that the majority of the initial suppliers of goods and services and the final recipients of goods were found to be non-existent.
Directors of MEPL, NYX and UGL have admitted to their offence and accepted in their statements that there was no real supply of goods and services, and the web of paper transactions was created only for increasing their turnover and utilisation of credit on their outward supply at Chennai, the sources said.
The total recovery so far is Rs 20.50 crores through DRC-03.
