The Anti-Corruption Bureau ( ACB ), investigating a Rs 175-crore GST refund scam involving a sales tax officer, made an arrest on Tuesday. A customs clearing agent was apprehended as the officer in question remains at large.
Kiran Bhanusali (31), who had been in hiding since the case was registered in March, was arrested while attempting to pay his son’s school fees in Ghansoli, Navi Mumbai. This marks the first arrest in the case. Bhanusali was presented before the special ACB court on Wednesday and placed in police custody.
His interrogation led to the identification of the alleged mastermind, Farooq Shaikh, currently in jail for a separate cheating case investigated by the CBI earlier this year involving Rs 200 crore. Police are also searching for their associate, Faizan, alias Nadeem. In March, the ACB had filed charges against the accused individual Amit Lalge and 16 unidentified traders for causing a wrongful loss of Rs 175 crore to the government. The scam came to light following an audit by the sales tax department, revealing that 16 companies had submitted 39 tax refund applications totaling Rs 175 crore without paying taxes. Lalge’s involvement surfaced during their internal review.
According to ACB officials, the alleged fraud occurred between August 2021 and March 2022. Scrutiny of documents from these 16 traders showed addresses predominantly in Ghatkopar and Kurla. Many operated from rented spaces of 200-300 sq ft, with only four firms registered with the Registrar of Companies ( ROC ), as stated by Assistant Commissioner of Police Manisha Zende. The investigation traced a money trail to a bank account linked to Bhanusali, who allegedly facilitated the creation of bogus companies and falsified shipping documents.
Deputy Commissioner of Police, ACB, Vijay Patil noted that Lalge misused his authority despite lacking authorization to approve refunds exceeding Rs 5 lakh.
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