DGGI takes major action, Himanshu Shah arrested in 100 crore Bogus ITC Fraud

DGGI Arrests Ahmedabad Resident for ₹100 Crore Bogus ITC Fraud

Officials at the Surat office of the Directorate General of Goods and Services Tax Intelligence (DGGI) have arrested Himanshu Rajnikant Shah, a resident of Siddhichakra Apartment in Paldi, Ahmedabad, for fraudulently availing bogus Input Tax Credit (ITC) worth ₹100 crore. By generating fake bills without supplying any goods, Shah wrongfully obtained ITC amounting to ₹100.56 crore. He has been booked under Sections 132(1)(b) and 132(1)(c) of the CGST Act.

The arrest occurred on the afternoon of September 3, following a tip-off. Prior to his arrest, the DGGI had been investigating bogus ITC claims linked to Chunara Traders, a firm purportedly connected to various other companies.

The investigation revealed that Mukesh Ramjibhai Chunara, who allegedly ran Chunara Traders, is untraceable and possibly non-existent. At the registered address of the firm, no office was found, and furthermore, the GST number of Chunara Traders has already been cancelled.

DGGI officers also looked into other construction companies that had purchased bogus bills from Chunara Traders, including Maheshwari Construction, Chamunda Construction, and Dayma Construction. The owners of these companies admitted to having taken invoices from Himanshu Shah without any supply of goods.

Following these admissions, the DGGI raided Shah’s office near Khadia crossroads and seized several incriminating documents. This included fake e-way bills in the name of multiple companies and numerous cheque books.

Subsequent analysis of data from around 18 companies revealed extensive fraudulent billing and bogus ITC claims. The companies identified as having availed bogus input tax credit include:

This case highlights the ongoing issues within the GST framework and the need for vigilant monitoring to prevent fraudulent activities.