CBIC arrests Kushal MD Sandeep Agarwal for Rs 88cr fraud

The Central Board of Indirect Taxes and Customs (CBIC) authorities on Tuesday arrested Kushal Ltd Chairman and MD Sandeep Agarwal for using fake bills to avail the benefit of Input Tax Credit.

"According to the initial estimates, the amount involved in the fraud could be around 88 crore rupees or more. We have arrested Agarwal under Section 132 and 69 of the Central GST Act," said a source in the tax department here.

The offense is cognizable and non-bailable under the Section 132 of the Central Goods and Services Tax (CGST) Act if the amount of tax evaded or credit availed on the basis of fake invoices is more than Rs 5 crore.

Both the Income Tax Department and the CBIC, which have made several arrests across the country in the recent past, have said that such operations are based on circular trading and issuance of fake invoices.

As per section 69 of the CGST Act, the CBIC Commissioner can arrest and produce company directors in court if they fail to pay their CGST dues.

Kushal Ltd is engaged in the trading, manufacturing and infrastructure development business globally. The firm was earlier known as Kushal Tradelink Ltd.

Market regulator, the Securities and Exchange Board of India (Sebi), had earlier penalized four employees of Kushal Tradelink with a fine of Rs 6 lakh for trading during the window closure period and by taking an opposite position within six months on an earlier transaction. By doing so, the employees violated the code of conduct under the Prohibition of Insider Trading norms, Sebi had said.

--IANS

desai/bc