93 fake firms indulging in bogus ITC of Rs. 491 Crore; nexus busted by DGGI Gurugram

Officials of Gurugram Zonal Unit (GZU) of Directorate General of GST Intelligence (DGGI) have busted a nexus of 93 fake firms involved in issuance of fake invoices to avail bogus input tax credit (ITC) to the tune of Rs 491 crore.

Further, DGGI Gurugram officials have arrested one accused from Hansi on 18/01/2022 under the provisions of the CGST Act, who has been sent to 14 days Judicial Custody by Duty Magistrate, on charges of running multiple fake firms on the strength of fake documents and having passed on fraudulently ITC to the quantum of Rs. 491 crore. Further investigation in the case is underway.

DGGI Gurugram office acted upon specific inputs from DGGI Jaipur that a person was providing cloud storage facility to various persons across India, for carrying out their work from remote locations and storing data. The Hard Disk recovered from the Cloud service provider was scrutinized and through scrutiny of data contained in such Hard Disk revealed that the Cloud Storage facility was being used by a key operative who appeared to be running a nexus of 93 fake firms.

During searches conducted on 18/01/2022, various firms were found non-existent at their given addresses. The key operative who was actively using the cloud storage service and running the said firms, has admitted during investigation that he has orchestrated the fraud along with other accomplices.  Based on the verifications, evidences and statements recorded, he appeared to be a key accused in the functioning of the racket of creation of fake firms, issuing of invoices without actual supply of goods in respect of 93 fake firms which has led to passing on of fraudulent and inadmissible ITC of Rs. 491 crore and thereby, violation of multiple provisions of the CGST Act, 2017.

MoF, GOI Press Release dt. 28/01/2022: DGGI Gurugram officials bust nexus of 93 fake firms issuing fake input tax credit invoices of Rs 491 crore, arrest one

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