DGGI Gurugram arrests man for input tax credit fraud of over Rs 43 crore
Mar 11, 2021
New Delhi [India], March 11 : The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana, has arrested a man for input tax credit fraud of more than Rs 43 crore.
The accused Ravinder Kumar is a resident of New Delhi and was arrested on Tuesday on charges of creating and operating fictitious firms on forged documents which were used in availing of and passing on Input Tax Credit on bogus Invoices without actual receipt and supply of goods or services, according to a statement from the Union Ministry of Finance.
It is apparent from the investigation conducted till date, that Ravinder Kumar created multiple proprietorship, partnership firms and private limited companies based in Haryana, New Delhi and Jharkhand merely on paper. Ravinder kept eluding the investigation and did not appear before the investigating authorities even after issuance of Summons on multiple occasions, the Ministry said.
Ravinder was absconding and kept changing his locations, the officers kept watch on his frequent places and after a long period of monitoring and active surveillance, were able to nab him.
"He admitted to having created two Private Limited Companies, one partnership firm and multiple proprietorship firms which have generated sham invoices without goods amounting to Rs 237.98 crore and passed on fake ITC amounting to more than Rs 43 crore," the Ministry informed.
The investigation spanned multiple locations in Delhi and Haryana and based on documentary evidence and statement recorded, it was established that Kumar is the key person in orchestrating this racket of creating fake firms on forged documents. Accordingly, he was arrested on 09.03.2021 and produced before the Metropolitan Magistrate, New Delhi, who ordered 14 days judicial custody. Further investigations in the matter are under progress.
