The Directorate General of GST Intelligence's (DGGI) Gurugram Zonal Unit (GZU) has arrested a Delhi resident on charges of setting up and operating fictitious firms on forged documents and passing fake Input Tax Credit (ITC) totalling Rs 190 crore through issuance of invoices without actual receipt or supply of goods and services.
The investigations into the matter revealed that Shamshad Saifi set up M/s Techno Electrical and M/s Lata Sales based in New Delhi on the basis of forged documents in the name of non-existent persons.
M/s Techno passed on fraudulent ITC of Rs 98.09 crore to M/s Lata, which further generated fake ITC of Rs 69.59 crore to various non-existent firms.
Saifi was also accused of creating four more fake firms, namely M/s Galaxy Enterprises, M/s Moon, M/s Sidharth Enterprises and M/s Sun Enterprises based in New Delhi, a Finance Ministry statement said.
It was ascertained that all the above-mentioned firms only supplied invoices without actual supply of goods. The total fake ITC of more than Rs 190 crore was passed by the accused.
The investigation spanned multiple locations in Delhi and based on documentary evidence and recorded statements, it was ascertained that Saifi was the key person in this racket.
Accordingly, Saifi was arrested on October 9 and presented before Additional CJM, Gurugram, who ordered him to be sent in judicial custody.
Further investigations are in progress.
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