GST Officers Uncover Rs 645 Crore Fake ITC Syndicate in Delhi, Arrest Key Conspirator, ETCFO
New Delhi, GST officers have uncovered a city-based syndicate involved in fraudulently availing ITC (input tax credit) worth Rs 645 crore through a web of 229 bogus GST registered firms, the finance ministry said on Thursday.
Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit, conducted coordinated search operations at multiple premises across the city, unearthing huge cache of incriminating documents, digital devices, and ledgers that established the operation of non-existent firms engaged in issuing invoices without actual supply of goods or services.
This included 162 mobile phones, probably used to get OTPs for GST/banking purposes, 44 Digital signatures and over 200 cheque books of various firms.
The preliminary findings indicate that these bogus entities were engaged in issuance of invoices without any actual supply of goods or services, resulting in the fraudulent passing of ineligible ITC amounting to Rs 645 crore approx, causing substantial loss to the exchequer, the ministry said.
This was done through a web of 229 dummy GST-registered firms, controlled and operated by a Delhi-based syndicate.
Investigations revealed that Mukesh Sharma, a key conspirator, orchestrated the operations of this network of fake entities. Sharma was arrested on November 11.
“The investigation has also brought to light a possible money-laundering component, wherein proceeds of the fraud were allegedly rotated through an NGO and a political outfit. Further investigation is underway,” the ministry said in a statement. PTI
