The Economic Offences Wing (EOW) of the Delhi Police has busted a major fake Goods and Services Tax (GST) invoicing racket involving a staggering Rs 128 crore. Six individuals have been arrested in connection with the case, which came to light following a detailed investigation into suspicious transactions.
How the Racket Operated
The accused allegedly created a network of shell companies that issued fake invoices without any actual supply of goods or services. These invoices were used by recipient firms to claim fraudulent input tax credit (ITC), thereby evading GST payments. The racket involved the generation of over Rs 128 crore in bogus invoices, causing significant revenue loss to the government.
Arrests and Seizures
The EOW arrested six individuals, including the mastermind identified as a chartered accountant. During the operation, investigators seized incriminating documents, digital devices, and stamps of various shell companies. The accused have been booked under relevant sections of the Indian Penal Code and the GST Act.
Modus Operandi
- The accused registered multiple shell companies using fake identities and addresses.
- They issued fake invoices to recipient firms, who used them to claim ITC.
- The transactions were routed through multiple bank accounts to avoid detection.
- The fraudsters charged a commission for providing these bogus invoices.
Investigation Details
The EOW initiated the probe after receiving intelligence about a large-scale GST fraud. A thorough analysis of financial transactions and digital footprints led to the identification of the network. The arrested individuals are being questioned to uncover the full extent of the racket and identify other beneficiaries.
Legal Action
The accused have been produced before a local court, which remanded them to police custody for further investigation. The EOW is also working with the GST department to trace the flow of funds and identify all entities that availed of the fraudulent ITC.
Impact and Warnings
This case underscores the government's crackdown on tax evasion through fake invoicing. The EOW has warned businesses against indulging in such practices, highlighting that strict legal action will be taken against offenders. The investigation is ongoing, with more arrests likely.
