Mumbai CA Arrested in ₹12 Crore Fake ITC Scam Probe
Mumbai CA arrested for allegedly masterminding Rs. 12-crore fake GST input tax credit racket through Flutron Build & Infra and linked shell companies
ITC Scam, Fake ITC Scam, ITC, CA Arrested
ITC Scam, Fake ITC Scam, ITC, CA Arrested
A 51-year-old Chartered Accountant from Bhayandar has been arrested by the Central GST Palghar Commissionerate for his alleged role in a fake Input Tax Credit (ITC) racket worth about Rs. 11.72 crore. The accused was taken into custody after officials said they uncovered evidence that he had created and managed a web of companies to generate fraudulent tax credits.
According to The Times of India, searches were carried out on 3 September at the registered office of Flutron Build & Infra Pvt. Ltd. and at other premises linked to Burad. During these searches, investigators seized documents and recorded statements under Section 70 of the CGST Act. Officials said the evidence pointed to the use of fake invoices to claim ITC without any actual supply of goods or services.
Investigators alleged that the CA has been practising since 2004 and was the main person handling the invoicing and related bank transactions for Flutron Build & Infra and other connected firms. He allegedly coordinated with directors of several companies and charged a commission of 0.25 percent on every transaction.
The department further claims that CA was associated with dozens of so-called “paper companies” that existed largely on paper without genuine operations. These entities were allegedly used to inflate turnover, boost group net worth, and secure bank loans in addition to generating fake ITC.
Case documents reviewed by the investigators show that a total of Rs. 11.72 crore of fake ITC was reflected in GSTR-3B returns filed by Flutron Build & Infra over financial years 2020-21 to 2025-26. Officials said this was achieved solely through the circulation of invoices with no real exchange of goods or services.
After his arrest, he was produced before the local court, which remanded him to judicial custody. The GST department requested custody on the grounds that further investigation is required to trace the money trail and identify other people involved in the network.
Officials have stated that the crackdown is part of a broader effort to curb the misuse of GST provisions and protect government revenue. The investigation into the fake ITC racket is still ongoing.
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