Chartered Accountant Arrested for Alleged Fraud Involving Fake Input Tax Credit in Palghar
In a significant crackdown on tax evasion, the CGST Palghar Commissionerate has arrested Ritesh Padamchand Burad, a 51-year-old Chartered Accountant from Bhayandar. He is accused of availing and passing on fake Input Tax Credit (ITC) amounting to Rs 11.72 crores through his firm, M/s Flutron Build & Infra Pvt. Ltd., and a network of linked entities.
The authorities conducted searches on September 3 at Flutron’s registered and principal place of business, as well as premises associated with Burad. Investigations revealed that ITC was claimed based on fraudulent invoices, with no actual supply of goods or services accompanying these transactions.
According to officials, Burad, who has been practicing as a Chartered Accountant since 2004, was at the center of the fraudulent invoicing process. He reportedly controlled invoicing and the corresponding bank transactions, teamed up with company directors, and charged a commission of 0.25% per transaction for his services. Additionally, Burad is connected to a multitude of shell companies that allegedly existed solely to inflate turnover, boost group net worth, and facilitate bank financing.
Documentation obtained during the investigation details that Rs 11.72 crore of ITC was recorded in the GSTR-3B filings for Flutron Build & Infra Pvt. Ltd. covering the financial years from 2020-21 to 2025-26. Following his arrest, Burad was presented before a local court, which remanded him to judicial custody. The tax department has requested this custody to pursue the tracing of financial trails and identify other participants involved in the suspected fraudulent scheme.
This case highlights the ongoing efforts of tax authorities to tackle fraud and maintain the integrity of the tax system, ensuring that legitimate businesses are not undermined by illegal practices.
