Young Mysuru Trader Nabbed in ₹400 Crore GST ITC Scam at Bengaluru Airport
DGGI has arrested a Bengaluru trader in Rs. 400 crore fake GST input tax credit scam, while his father remains on the run
A 24-year-old businessman from Mysuru has been arrested for his alleged role in a massive fake Goods and Services Tax (GST) invoice racket worth over Rs. 400 crore. Officials from the Directorate General of GST Intelligence (DGGI) caught Mohammed Kamran at Kempegowda International Airport in Bengaluru on Tuesday, when he was returning from Mumbai.
According to the TOI, Kamran, a resident of Bannimantap Layout, Mysuru, runs a scrap and steel business under the name MK Traders. His father, Akram Pasha, who operates AK Steels, is also accused of being a key player in the racket. Pasha is currently on the run, and authorities have launched a search to track him down.
Your Ultimate Guide to India’s Latest Income Tax Laws - Click here
The case came to light after DGGI officers conducted coordinated raids on September 10 at 13 different locations: three in Bengaluru and ten in Mysuru. These included the family’s homes, offices, and warehouses. During the raids, investigators discovered evidence of fake invoices being issued to claim fraudulent input tax credit (ITC) without any real supply of goods or services.
According to officials, the racket involved transactions of around Rs. 419 crore in bogus ITC claims and another Rs. 469 crore in fake ITC passed on to others. The government suffered a direct tax loss of at least Rs. 20 crore. The fraud was uncovered after officers traced suspicious patterns through IP address analysis, which revealed a network of linked suppliers and recipients involved in the scam.
The raids also led to dramatic incidents. Kamran and his father allegedly tried to obstruct officials from carrying out their duty. Kamran’s sister, Firdous Bhanu, reportedly fled the house during the raid carrying a hard disk that stored CCTV footage. A police complaint has been filed at Narasimharaja police station in Mysuru, naming six people including Kamran, his father, mother, and sister.
Investigators have seized six mobile phones and a laptop from Kamran. Officials say further arrests are likely as the probe continues. Both Kamran and his father could face serious charges under GST law, which carries strict penalties for fake invoice frauds.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
