Pune’s GST Intelligence unit has disrupted a multi-state counterfeit input tax credit scheme valued at Rs 145 crore. A significant development, the Pune division of the Directorate General of GST Intelligence ( DGGI ) uncovered this racket, leading to the arrest of an individual from Rajasthan, as per official reports on Tuesday.
The operation, spearheaded by the Pune unit, unfolded over the weekend following an inquiry into several firms in Pune and Goa. It was revealed that the network extended across Maharashtra, Rajasthan, Delhi, Karnataka, Tamil Nadu, and Telangana, with the possibility of additional states being involved. Approximately 50 fraudulent companies were implicated, utilizing fabricated or altered documentation to fraudulently claim substantial amounts of input tax credit without actual transactions.
Investigators delved into call detail records (CDRs), customer application forms (CAFs), return filing patterns, and bank account analyses. They discovered that the syndicate, operating from various locations nationwide, established bogus entities using aliases, fake identities, forged legal papers, and even circumvented biometric requirements for SIM card issuance.
After extensive tracking across multiple cities and states, GST investigators received intelligence that Rahul Kumar, the alleged mastermind behind these bogus companies and the entire scheme, was active in Jaipur. “We pinpointed his exact location based on e-commerce deliveries and input from SIM card operators. Our team conducted a raid at his residence on Friday, securing evidence and apprehending Kumar,” stated an official from the DGGI Pune unit.
Investigators also unraveled Kumar’s unique methodology, which involved creating numerous fake identities of proprietors or authorized signatories. This was facilitated by SIM cards linked to forged Aadhar cards, enabling complete control over GST registrations, return filings, payments, cancellations, and OTP retrieval at their discretion.
Kumar was presented before a Jaipur court, which granted transit remand. Subsequently, he was transferred to Pune, where a Chief Judicial Magistrate’s Court remanded him to custody for 14 days on Monday. Ongoing investigations seek to uncover additional fraudulent entities, identify other associates involved in the scheme, ascertain the ultimate beneficiaries, and recover the defrauded funds.
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