A 31-year-old, who had been evading authorities for the past nine months, has been arrested in connection with a Rs 10,000-crore GST fraud orchestrated across the country. Babar Khan allegedly created fake firms using stolen or forged ID cards to fraudulently claim input tax credits, according to the police.
On June 1 last year, Noida police announced they had busted a gang suspected of orchestrating the GST fraud.
The scheme involved registering thousands of companies under stolen or fake identities to generate e-way bills and obtain input tax credits from the government. With Khan’s arrest, the total number of people detained in connection with the scam has reached 47, including residents of Delhi, Noida, Ghaziabad, Sirsa, Jaipur, and Chhindwara. On June 3 this year, charges under the Gangster Act were filed against 33 of the 47 arrested individuals.
The case came to light after the gang applied for the registration of bogus companies using the PAN details of a journalist, successfully registering two firms in Punjab and Maharashtra, while a request for a third in Delhi was rejected by the GST authorities. Shakti Avasthy, DCP (Crime), stated that Khan was apprehended from his residence in Loni by a team from Sector 20 police station.
“He had been on the run for the past nine months. About six months ago, Noida police announced a Rs 25,000 reward for his capture. Preliminary investigations revealed he persuaded poor and gullible people to share their Aadhaar cards, which were then used by the gang to create bogus firms and claim ITC, the DCP stated.
Khan, involved with the group since 2021, was remanded in judicial custody after appearing before a local court on Thursday. The exact number of IDs he forged remains unclear.
In related news, the wait continues for the online gaming industry regarding the GST rate.
Read Also: 53rd GST Council Meeting: Key Highlights
Finance Minister Nirmala Sitharaman chaired the recent GST Council Meeting, which focused on trade enhancements and taxpayer relief. The Council, however, did not discuss the imposition of GST on online gaming, casinos, and horse racing and the FM refused to reply to queries of the same.
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