Delhi: 2 men booked for alleged involvement in issuance of fake invoices

Two men were arrested for their alleged involvement in the issuance of fake invoices.

Chief Metropolitan Magistrate (CMM), New Delhi at Patiala House Courts sent the accused Naveen Mutreja and Keshav Ram to judicial custody for 14 days.

"The accused were found to be operating 42 fake firms created to facilitate fraudulent Input Tax Credit (ITC), thus defrauding the Exchequer. Prima facie fraudulent ITC of about Rs 22 crores has been passed on using invoices involving an amount of Rs 150 crores," an official release said.

The accused were allegedly involved in obtaining GST registration of fake firms across Delhi NCR, Haryana, Rajasthan and Uttar Pradesh using documents of unsuspecting individuals and generating good-less invoices and e-way bills of these firms from a premise in Karol Bagh.

"On preliminary scrutiny, it appears that there is no nexus between inward and outward supplies of the errant firms. Further, the said firms have passed on fraudulent ITC to a range of buyers who have availed the same to discharge their GST liability on outward supplies, thus defrauding the Exchequer," read the release.

Naveen Mutreja and Keshav Ram were booked under the provisions of Section 132(1) (b) and (c) of the CGST Act 2017.