CGST ghaziabad arrested the mastermind in follow up of an earlier case involved in GST fraud of Rs.783 crs. in value & fake ITC of approx 137 crs. by creating 76 bogus firms in connivance with 2 other persons using multiple PAN, mobile no etc. 3 persons have been arrested so far.

CGST ghaziabad arrested the mastermind in follow up of an earlier case involved in GST fraud of Rs.783 crs. in value & fake ITC of approx 137 crs. by creating 76 bogus firms in connivance with 2 other persons using multiple PAN, mobile no etc. 3 persons have been arrested so far.

PRESS NOTE CENTRAL GST COMMISSIONERATE, GHAZIABAD ARRESTS ONE PERSON INVOLVED IN A GST FRAUD CASE REGISTERED IN DECEMBER 2020 INVOLVING TAXABLE VALUE OF RS. 783 CRORES AND AVAILMENT AND UTILIZATION OF FAKE INPUT TAX CREDIT OF APPROX RS 137 CRORES On the basis of information shared by Chief Commissioner Office, CGST & Customs, Meerut Zone, Meerut, CGST Commissionerate, Ghaziabad had initiated an enquiry in December 2020 against a firm M/s Jai enterprises and 41 other firms mostly based in Ghaziabad leading to unearthing of a racket of GST fraud involving taxable value of Rs. 628 crores approx. and availment and utilization of fake input tax credit of approx. 99 crores by creation of multiple bogus firms using multiple PAN, mobile numbers and bank accounts. During the course of investigation, two members of the racket named Sh. Naresh Kumar and Sh. Roopak Vashistha were arrested by this office on 21.04.2021 and on 10.03.2022 respectively due to their active involvement in the fraud .Subsequently a complaint to prosecute Sh. Naresh Kumar was also filed ,n CJM court.

2. During the course of further investigations, this office conducted a series of searches on 04/05.04.2022 at around 36 more premises located at Ghaziabad. During the investigations, another person named Sh. Rajeev Sharma involved in this racket was summoned and it was revealed that Sh. Rajeev Sharma, who was the mastermind, in connivance with Sh. Naresh Kumar and Sh. Roopak Vashistha were engaged in creation and operation of fake/bogus firms. As per investigation conducted till date, total 76 firms have been found bogus/fake resulting into availment of fake input tax credit of approx. Rs. 137 crores. It was also revealed that there are more than 100 bogus firms in multiple jurisdictions registered on the mobile no, PAN and bank accounts mentioned in above mentioned 76 firms. Quantum of GST evasion and the numbers of firms involved in the case are likely to go up.

3. Thereafter, Sh. Rajeev Sharma allegedly involved in creation of fake/bogus firms for the availment and utilization of fraudulent Input Tax Credit (ITC) on the strength of invoices without receipt of any goods, was arrested on 05.04.2022 under Section 69 of the CGST Act 2017 for the offences committed under provisions of Section 132 of CGST Act. He was produced before the court of Special CJM, Meerut on 05.04.2022, who ordered for his judicial custody till 18.04.2022.