New Delhi: The Directorate General of GST Intelligence (DGGI), Jaipur Zonal Unit, today claimed to bust a “crime syndicate” based in Delhi, which operated 569 fake firms and through them created huge fraudulent Input Tax Credit (ITC) of Rs 1,047 crore.
This syndicate issued invoices having taxable turnover of Rs. 6,022 crores involving ITC of Rs. 1,047 crores through these 569 fake firms to more than 2,000 beneficiary firms. The majority of the fake firms are located in Delhi with a presence in 13 other states of Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam and Uttarakhand. So far, 73 bank accounts used by the syndicate and brokers have been attached.
Providing details the DGGI said the mastermind Rishabh Jain, aged 30, a resident of Delhi, had hired 10 employees for operating these fake firms. After extensive recce and data analytics, the officials of DGGI, Jaipur were able to trace this mastermind in Delhi and nabbed him. He was arrested on June 25, 2023, and produced before Economic Offence Court, Jaipur. He has been remanded to judicial custody till July 7, 2023.
“The modus operandi indicates that the syndicate has a close nexus with various brokers to purchase firms, bank accounts, SIM Cards, to manage their RTGS/cash transfers and mediate between them and beneficiary firms,” the DGGI stated. It added that there were brokers and agents who specialised in registering firms on the Goods and Service Tax Network (GSTN) using IDs of poor, needy and susceptible people and selling these registered firms to syndicates, who further issued fake invoices through them.
DGGI, Jaipur Zonal Unit has been at the forefront in Rajasthan in detecting fake ITC cases, as during last financial year (F.Y). (2022-23), 142 cases involving fake ITC of Rs. 1,327 crores were booked, in which 9 persons were arrested.
In this F.Y. (2023-24) in less than 3 months, 5 fake ITC cases involving Rs. 1,531 crore were booked with the arrest of 5 masterminds. The unit succeeded in cracking 2 big syndicates within the last seven days. Last week also, two masterminds were arrested from Jaipur on June 19, for running a fake ITC syndicate of Rs. 320 crore. Follow-up action is being taken for realising government revenue, it stated.
– global bihari bureau