In a significant crackdown on an alleged Goods and Services Tax ( GST ) fake billing fraud amounting to hundreds of crores, authorities have apprehended fourteen key conspirators. The individuals are now facing charges under various sections of the stringent GUJCTOC ( Gujarat Control of Terrorism and Organized Crime ) Act, 2015, according to official statements.
The State Goods and Services Tax ( SGST ) Department, in collaboration with Bhavnagar police, revealed a sophisticated scheme involving the creation of fake GST registrations and the issuance of counterfeit invoices for non-existent metal scrap businesses. This operation aimed at illicitly availing Input Tax Credit ( ITC ) and evading taxes.
Investigations have exposed the tactics employed by scammers who targeted individuals facing financial vulnerability. They enticed their victims with promises of facilitating loans through government schemes.
The fraudulent operators convinced these individuals to visit the nearest Aadhaar kendra, where they manipulated the linked mobile numbers on their Aadhaar cards. Subsequently, the scammers utilized the Aadhaar card details with the altered phone numbers to acquire new PAN cards and GST registrations, forming the foundation for their tax evasion scheme.
According to sources, each fabricated GSTIN was traded for amounts ranging from Rs 5,000 to Rs 2 lakh, depending on the negotiated terms between the buyer and seller. This illicit activity extended beyond Gujarat, as counterfeit GSTINs were also identified in Maharashtra, Tamil Nadu, Uttar Pradesh, and Delhi.
To date, a total of 141 arrests have been made in connection with five separate police complaints related to this fraud, uncovering financial wrongdoing amounting to hundreds of crores.
During Aadhaar 1.0, Gujarat Police filed five FIRs, leading to 141 arrests, uncovering a scheme that facilitated the acquisition of around 6,000 fraudulent GSTINs.
In the recent revelation of Aadhaar 2.0 in Ahmedabad, a staggering 7,345 fake GSTINs were identified. Sources have verified that individuals involved in the scam specifically targeted residents in the Danilimda, Behrampura, and Amraiwadi areas of Ahmedabad.
Officials from the Bhavnagar Local Crime Branch disclosed that the 20 main conspirators in this case have a history of involvement in other criminal activities. Consequently, the police submitted an application to the Additional Chief Judicial Magistrate court in Bhavnagar on February 17, seeking charges against them under different sections of the GUJCTOC Act, 2015. The court approved the application, granting permission for legal proceedings against the accused.
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