The Economic Offences Wing of the Delhi Police is examining a complaint from the VAT Department, alleging that some business firms have claimed input tax credit under GST on the basis of fictitious documents and non-existent bank accounts.
“The complaint was sent by Reena Toppo, VAT officer from the Delhi government… The preliminary amount is Rs 9.97 crore,” said Additional Commissioner of Police (EOW) Suvashish Chaudhary.
A notice sent by the Commissioner, (VAT/GST), H Rajesh Prasad, claimed that a fraud of Rs 250 crore had taken place.
“… It is further noticed that during the period from September 30, 2013, till September 26, 2018, a total of 8,758 dealers were identified, who have made 31,027 transactions amounting to Rs 250 crore,” the notice read.
The notice said that during verification of credit of payments made by dealers registered with the department, it was noticed by the system branch of the department that some payments claimed to have been made via the banking channel were not received by the government exchequer.
“In response to our letters, these banks confirmed that the said payments have not been credited to the exchequer. This suggests that cheating and fraud have been committed on the department for personal financial gains of dealers,” the notice said.