Rs 200 crore GST fraud unearthed by DGGI in Bengaluru; 4 arrested
Bengaluru | Jagran News Desk: In a shocking incident, the Bengaluru Zonal Unit of the Directorate General of Goods and Services Tax (GST) Intelligence (DGGI) has unearthed a Rs 200 crore tax evasion racket in the city.
According to a report by The Times of India, the officials have arrested four men who were allegedly involved in raising fake invoices of Rs 1,000 crore and GST evasion of around Rs 200 crore for several MNCs, including Chinese firms.
The report claimed that the four men -- Kamlesh Mishra from Delhi and Bialadugu Krishnaiah, Suresh Mehta, Haneef Mohammed from Bengaluru -- were allegedly involved "in the issuance of fake invoices to well-established Chinese companies across India".
As per the report, Mishra floated 23 companies in the names of poor individuals and used their documents to start a firm on their names, creating fake invoices of Rs 80 crore. After his arrest, Mishra informed that he used to "sell products for high profits in his fictional firms and projected a huge turnover" to obtain loans from banks.
On the other hand, Krishnaiah through his firm issued fake invoices for Chinese companies. Following Krishnaiah's arrest, the officials raided several Chinese firms in Mumbai seized several documents.
Like Krishnaiah, Mehta and Haneef were also involved in issuing fake invoices for Chinese MNCs. Mehta is said to be the kingpin of the fraud. Meanwhile, Haneef, a scrap dealer by profession, is a repeat offender and has availed fake income tax credit (ITC) of Rs 6.5 crore.
"These bogus companies have allegedly raised fake invoices worth Rs 500 crore, involving GST of around Rs 80 crore, which has been availed by various well-established companies from across India," the DGGI release said, as reported by the New Indian Express.
"Consequent to searches conducted at the premises of major recipients in Mumbai, Hyderabad and Bengaluru, an amount of Rs 12 crore was recovered till date. Investigations are in progress to identify other beneficiaries to recover the tax liability," the release added.
Posted By: Aalok Sensharma