The 3 CAs namely PVV Satyanarayana, Ankur Garg, and Bondalapati Srinivasa Rao were arrested in the GST fake invoice frauds during the nationwide drive in the last few days.
About 41 people have been arrested in the last eight days in a fake invoice cartel busted by the Directorate General of GST Intelligence (DGGI) and three of them who are chartered accountants are facing disciplinary action.
The DGGI will write to the Institute of Chartered Accountants of India (ICAI) to take necessary action for professional misconduct against three Chartered Accountants (CAs) who have been arrested in the GST fake invoice frauds.
“In the nationwide crackdown on people abusing the GST system using fake invoices, DGGI has booked 577 cases against 2,221 entities in the last eight days,” said the official.
Using BIFA and analysis of data on the e-way bill portal, it could be established that these firms had a common set of ghost partners and bogus bills worth Rs.158 crore had been generated, involving fake ITC of more than Rs 21 crore and monetization of fake ITC of more than Rs 5 crore through cash refund.
The GST authorities held searches and surveys in 20 cities including Chennai, Ahmedabad, Pune, Nagpur, Hyderabad, Jaipur, Delhi, Bengaluru, Mumbai and Kolkata.
Most of the addresses were found to be non-existent. The mastermind behind this racket, Amit Kumar is absconding and efforts are being made to apprehend him.
At Hosur, during the course of premises verification, eight entities were found fictitious.
From the inquiry conducted, it is found that the registrations were taken in the name of various persons by one auditor who was paying some amount to the identity lenders on a monthly basis.