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
Over 200 fictitious businesses engaged in fraudulent transactions across the nation have been uncovered by the Directorate General of Goods and Services Tax Intelligence (DGGI), which has initiated a comprehensive investigation into a significant GST evasion scheme.
The Directorate General of Goods and Services Tax Intelligence (DGGI) furnished the intelligence that the Ahmedabad Crime Branch used to launch simultaneous raids in 14 different sites, including Junagadh, Surat, Kheda, Bhavnagar, and Ahmedabad.
Targeting participants in a large-scale GST scam, the operation resulted in the arrest of over 33 important players who are thought to have founded 12 fraudulent companies.
Mahesh Langa, a journalist and the son of a well-known MLA from Saurashtra, is among those being questioned as officials work to sift through the complex web of financial fraud. Journalist Mahesh Langa has been arrested along with other others during the probe.
"Journalist Mahesh Langa has been arrested based on a complaint received from GST authorities, alleging the use of false documents," ACP Bharat Patel of the Crime Branch told the local media. The Crime Branch will confiscate all pertinent records and carry out a comprehensive inquiry. As additional information comes to light during the current investigation, more steps will be taken."
A focus on bogus ITC (Input Tax Credit) applications of crores is the inquiry, according to sources, which is conducted across 33 locations across the country. Authorities have discovered multiple important creators and operators of these phoney corporations as part of a broad crackdown on fictitious businesses engaged in a large GST scam. These people and businesses were at the heart of the fraud, according to the investigation:
- Nimesh and Hetalbehan Vora of Arham Steel
- Om Building Company: Hitvarajsinh Saravaia, Brijrajsinh Saravaia, Vanrajsinh Saravaia, and Rajendrasinh Saravaia
- Shree Kankeswari Enterprise: Jayeshbhai Waja, Vijay Wagh, Kalubhai Wagh, Prafulbhai Waja, and Manan Waja
- Raj Infra: Arvinand Sutaria, Jayeshkumar Sutaria, and Ratnadeepsinh Dodia
- Haresh Construction Company: Prabhaben Gondalia, Jyotish Gondalia, and Nilesh Nasit
- Langa Manojkumar Rambhai and Vinubhai Natubhai Patel are the D.A. Enterprise.
- Nilesh Nasit, Jyotish Gondalia, and Prabhaben Gondalia are employed in Ethiraj Construction Pvt. Ltd.
- B.J. Odedara: Bhagirath, Bhojabhai, Keshubhai, Bhojabhai Jessabhai, and Abhabhai Jessabhai Ohdarra
- Ramanbhai Dasa, Nathabhai Dasa, and R.M. Dasa Infrastructure Pvt. Ltd.
- Aryan Associates: Ramesh Kalabhai Barad, Vijaykumar Barad, and Ajay Barad
- Prithvi Builders: Dodhia Paresh Pradipbhai
- Paresh Pradipbhai Dodia Builders: Paresh Dodia
These people are charged with setting up front firms to enable false tax claims and avoid paying GST. As the investigation into this massive financial scam continues, further arrests are anticipated by the authorities.
"It appears that prima facie, there is the involvement of over 200 fraudulently created firms/entities working across the country in an organised manner to defraud the Government Exchequer by availing and passing bogus Input Tax Credit," said a press release issued on Monday by the Ahmedabad Crime Branch. It has also been noted that these companies are established through the use of falsified identities and documentation with the intention of avoiding obligation by deception.
"A sizable group appears to be involved in a criminal plot aimed at financially harming the country, with revenue losses perhaps reaching the crores of rupees. False invoicing, falsified paperwork, and wilful misrepresentation of the truth were used to accomplish this. Additionally, it states that "legal actions are being taken in accordance with the ongoing investigation."
