Five people, including a chartered accountant (CA), were Friday arrested in connection with Rs 11 crore GST scam reported in 2019 involving around 100 shell companies.
Police officials claimed that the scam could involve misappropriation of GST funds of Rs 100 crore.
The arrested five included a man, who had been abasconding for the last three years and Rs 30,000 reward was announced on him.
The accused were identified as Ishwar Chand Garg of Sector 45, Yashpal Jindal of Sector 37, Vinay Jain of New Delhi, Sushil Singla of New Delhi, a chartered accountant, and Anuradha Sharma of Khuda Jassu village in Chandigarh. Police said that Rs 30,000 reward was announced on Ishwar Chand.
SP (EOW) Ketan Bansal said, “A case was registered in Economic Offences Wing on the complaint of Sanjeev Madaan, Excise & Taxation Officer-cum-Proper Officer against Prop. of M/s AK Trading Company in 2019. He had reported that one Anuradha, the proprietor of A K Trading Company in connivance with other associates obtained a registration under UT GST Act 2017, CGST 2017 and IGST Act 2017. As per registration application on the GST portal, the main business of the firm was to supply all kind of scrap. The Excise and Taxation Inspector submitted his report in February 2019 that there was no business activity from the business premises at Khuda Jassu, Chandigarh, in respect of above said company. During the period of registration, accused person made the transaction of payable taxable supplies of goods to the tune of Rs 21,68,92,963 and not deposited the due tax of Rs 9 crore in government treasury. Similarly, in another FIR, the above accused made transaction of payable taxable supplies of goods to the tune of Rs 8 crore approximately and not deposited the due tax of Rs 2.5 crore approximately in government treasury.”
Police said that during the course of investigation, it was found that accused person opened firm AK Company which deals in scrap, further two accounts of company were opened in HDFC and Axis bank for transaction purpose by accused Ishwar Chand and Yashpal Jindal, the fake rent agreement of principle place of business at Khuda Jassu was prepared in the name of one Anuradha Sharma (servant of accused Yashpal Jindal), where no physical activity of business was going on. Both accused Ishwar Chand and Yashpal Jindal are close relatives. In December this year, accused Ishwar Chand joined the investigation in EOW, Sector-17,Chandigarh.
During the interrogation, it has been established that Ishwar Chand in connivance with Yashpal Jindal ,Sushil Singla and Vicky Jain hatched a conspiracy at Delhi in the office of CA Sushil Singla regarding opening of fake firms and bank accounts to carry out bogus business transactions, thereby claiming GST benefits and causing loss to exchequer.
In pursuance to it, they opened a fake firm of scrap in the name of A K Trading company and prepared fake bills to avail GST refund (in the form of input credit) from government .