Man held for operating fictitious firms, passing fake ITC of Rs 190 cr

Gurugram (Haryana) [India], October 9 : A man has was arrested on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit (ITC) of Rs 190 crore, the Directorate General of GST Intelligence (DGGI) said on Friday.
The Gurugram Zonal Unit of the DGGI said that accused Mohammad Shamshad Saifi created two companies by the name of M/s Techno Electrical and M/s Lata Sales in New Delhi on the basis of bogus and forged documents in the names of non-existent persons at addresses not even pertaining to the firms. "The M/s Techno passed on fraudulent ITC of Rs 98.09 crore to M/s Lata, which further generated fake ITC of Rs 69.59 crore to various non-existent firms," the DGGI said in a press note on Friday.
Saifi is also responsible for creating four more fake non-existent firms namely M/s Galaxy Enterprises, M/s Moon, M/s Sidharth Enterprises and M/s Sun Enterprises based in New Delhi, it alleged. "It was ascertained that all the above-mentioned firms have only supplied invoices without the actual supply of goods."
The DGGI added that the investigation spanned multiple locations in Delhi and based on documentary evidence and statement recorded, it was ascertained that Saifi is a key person in orchestrating this racket.
Saifi was produced before Additional CJM, Gurugram, who sent him to judicial custody.
Further investigation in the matter is under progress.