Massive GST Fraud Uncovered: Over 200 Fake Firms Involved Across India
According to sources, the probe, which is focused on bogus ITC (Input Tax Credit) claims of crores, is conducted at 33 locations across the country.
Ankush Pandey
According to sources, the probe, which is focused on bogus ITC (Input Tax Credit) claims of crores, is conducted at 33 locations across the country.
A comprehensive investigation into a significant GST evasion scheme has been initiated by the Directorate General of Goods and Services Tax Intelligence (DGGI), which has found more than 200 phoney businesses engaged in fraudulent activities nationwide.
The Ahmedabad Crime Branch carried out concurrent raids in 14 locations, including Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar, using information from the Directorate General of Goods and Services Tax Intelligence (DGGI).
Over 33 important operators who are suspected of establishing 12 fake businesses were detained as a result of the operation, which targeted those involved in a massive GST fraud.
Mahesh Langa, a journalist and the son of a well-known Saurashtra MLA, is one of those being questioned as authorities continue to disentangle the complex web of financial fraud. Journalist Mahesh Langa was among those arrested following the investigation.
The Crime Branch's ACP Bharat Patel told the local press: "A complaint from GST authorities alleging the use of false documents led to the arrest of journalist Mahesh Langa. The Crime Branch will carry out a comprehensive investigation and confiscate all pertinent documents. Additional steps will be taken as more information becomes available during the ongoing investigation.
The investigation, according to sources, is focused on fraudulent ITC (Input Tax Credit) claims totalling crores and covers 33 locations across the country. Several important builders and operators behind these fraudulent entities have been identified by authorities in a broad crackdown on phoney companies involved in a massive GST fraud. The following people and businesses were identified as being at the core of the scam by the investigation:
Arham Steel: Nimesh Vora, Hetalbehan Vora
Brijrajsinh Saravaia, Vanrajsinh Saravaia, Hitvarajsinh Saravaia, and Rajendrasinh Saravaia are the companies that make up Om Construction.
- Shree Kankeswari Enterprise: Vijay Wagh, Jayeshbhai Waja, Manan Waja, Kalubhai Wagh, and Prafulbhai Waja
- Raj Infra: Jayeshkumar Sutaria, Arvinand Sutaria, and Ratnadeepsinh Dodia
- Haresh Construction Company: Prabhaben Gondalia, Jyotish Gondalia, and Nilesh Nasit
- Vinubhai Natubhai Patel and Langa Manojkumar Rambhai of D.A. Enterprise
- Nilesh Nasit, Jyotish Gondalia, and Prabhaben Gondalia of Ethiraj Construction Pvt. Ltd.
- The following are the names of B.J. Odedara: Abhabhai Jessabhai Odedara, Keshubhai Odedara, Bhagirath Odedara, and Bhojabhai Odedara.
- Nathabhai Dasa and Ramanbhai Dasa are the owners of R.M. Dasa Infrastructure Pvt. Ltd.
- Ramesh Kalabhai Barad, Vijaykumar Barad, and Ajay Barad are Aryan Associates.
- Paresh Pradipbhai Dodhia is the Prithvi Builder.
- Builders of Paresh Pradipbhai Dodia: Paresh Dodia
These people are charged with setting up shell corporations to help with false tax returns and avoid paying GST. The investigation into this massive financial scam is still ongoing, and more arrests are anticipated as it progresses.
The Government Exchequer appears to be defrauded by more than 200 fraudulently established companies and entities operating nationwide in concert to obtain and pass bogus Input Tax Credit," the Ahmedabad Crime Branch said in a press release on Monday. In an effort to avoid responsibility through dishonest means, such firms have also been established using forged identities and documentation.
"It appears that a sizable group is involved in a criminal conspiracy to deprive the country of money, possibly amounting to crores of rupees in revenue losses. False billing, falsified paperwork, and wilful misrepresentation of facts were used to accomplish this. Additionally, it states that legal procedures are being carried out in accordance with the ongoing investigation.
