The Directorate General of GST Intelligence (DGGI) Meerut Zonal Unit has uncovered two significant fake billing schemes involving 246 shell/fake entities. These entities were involved in fraudulent activities, passing on a total of Rs. 557 crore worth of fake Input Tax Credit (ITC).
The officials have arrested 3 individuals, who are the mastermind and linked to these operations. Additionally, one of these fraudulent schemes was found to have strong connections with fake firms previously discovered by the Noida Police in June 2023.
Authorities have successfully thrashed 2 significant syndicates commanded by masterminds Mr. Anand Kumar and Mr. Ajay Kumar using indications from the Noida Police case and utilising considerable data mining in addition to human intelligence. These gangs were responsible for setting up and running phoney shell companies.
The covert offices of Mr. Anand Kumar and Mr. Ajay Kumar, which were located in Delhi’s Adhyapak Nagar and Paschimpuri, respectively, were raided during the operation, and numerous documents connected to the fake firms, including counterfeit stamps, debit/credit cards, cheque books, Aadhaar cards, and PAN cards, were taken.
The finding of these records raised the possibility that these masterminds and brokers/agents, who specialised in getting the names of weak and needy people in exchange for modest financial rewards, have tight relationships. The police have detained both Mr. Anand Kumar and Mr. Ajay Kumar.
Through the forensic examination of the confiscated laptops and mobile phones, investigators successfully recovered ledgers, invoices, e-way bills, and bilties that were being maintained using Tally/BG systems software. In addition, bundles of WhatsApp chats and voice messages were also retrieved, providing evidence of transactions involving fake GST bills and illegal cash flow.
Furthermore, the initial investigation has pointed to the possible complicity of bank officials in facilitating the opening of bank accounts under the names of these fraudulent firms.
These 2 syndicates have generated invoices with a taxable turnover of Rs. 3,142 crore, claiming Input Tax Credit (ITC) worth Rs. 557 crore through 246 fake firms. These invoices were issued to over 1,500 beneficiary firms. The primary beneficiary companies are based in Delhi, while others are situated across 26 different states. As part of the investigation, Mr. Vikram Jain, who is the proprietor of one such beneficiary firm, has also been apprehended by the authorities.
On July 26, 2023, the three accused were presented before the Economic Offence Court in Meerut. They were all remanded in judicial custody until August 8, 2023.
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