The Directorate General of GST Intelligence (DGGI) in Mumbai arrested three people on Wednesday in connection with an input tax credit (ITC) fraud of more than Rs 2,350 crore.
The accused, who were arrested in separate cases, include Sachin Bhoruka, director of firms such Erman Metals Pvt Ltd, Pioneer Trading Co, Marshal Multiventures (I) Pvt Ltd and Aikya Infraprojects Pvt Ltd, Mahesh Kinger, authorised signatory of Blue Sea Commodities Pvt Ltd and director of Theme Lights Pvt Ltd, and Deepak Kumar Prajapati, director of Udyog Kiran Ltd.
Bhoruka, according to the probe agency, has availed and utilised fictitious ITC of Rs 485.64 crore and passed on fake ITC of another Rs 485.55 crore.
In the case of Kinger, the DGGI has alleged that his firms too availed, utilised and passed on “ineligible ITC on the basis of bogus invoices issued and received without any actual supply or receipt of any goods or services”.
“The total quantum of the fraud committed involves Goods and Services Tax (GST) amounting to Rs 1,159.99 crore,” said Seema Jere Bisht , principal additional director general, DGGI, Mumbai.
In case of Prajapati, the DGGI has found that apart from allegedly indulging in GST fraud of Rs 220 crore, he had formed 22 companies for circular trading to artificially inflate the “turnover to avail higher bank loans and credit facilities”.
The three have been booked under Section 69 (1) of the Central Goods and Services Act, 2017 and have been remanded to judicial custody till December 7.
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