DGGI Arrests Masterminds Behind ₹700 Crore Fake GST Billing Fraud
The Directorate General of GST Intelligence (DGGI) recently apprehended two masterminds, Manish and his brother Amit, who are implicated in a substantial GST fraud exceeding ₹700 crores. The brothers, residents of Gurmukh Singh Colony in Mandi Gobindgarh, are accused of orchestrating an extensive fraudulent scheme that involved the establishment of fictitious firms through identity theft.
This sophisticated scam facilitated the generation of fake invoices and the filing of input tax credit (ITC) claims, leading to a staggering tax loss of over ₹100 crores for the government.
According to DGGI officials, the duo managed a complex network of dummy firms which passed on the fraudulently acquired ITC to various intermediary companies. The illicit funds from this operation were then funneled into seven Agricultural Produce Market Committee (APMC) accounts, enabling the brothers to withdraw cash exceeding ₹717 crores, primarily through a single bank branch.
In a recent series of raids conducted at both their residential and official premises, DGGI seized a substantial cache of evidence. This included 11 mobile phones, seven pen drives, two laptops, 56 cheque books tied to multiple bank accounts, 27 identity documents, seven stamps, and 46 ATM cards belonging to various individuals.
The brothers have reportedly confessed to their roles in the fraudulent activities and were arrested on October 9. They are currently in judicial custody as the investigation is ongoing.
In response to this incident, DGGI Ludhiana is intensifying efforts to identify additional dummy entities that may be involved in similar fraudulent activities linked to bogus billing and tax evasion. Authorities are ramping up their initiatives to combat the escalating issue of fake billing in the region, with expectations of further arrests to follow in the near future.
