New Delhi, September 15: The Directorate General of GST Intelligence / DGGI Gurugram Zonal Unit (GZU), Haryana arrested 3 people. It also includes a CA, on charges of creating and operating multiple fictitious firms on forged documents, passing huge amounts of fake input tax credit by issuance of invoices without actual receipts or supply of goods or services.
From the investigation conducted till now, it is concluded that one of the arrested people created at least 13 firms and has also been involved in the availing and passing on of a total fraudulent ITC of Rs. 121 crores.
It was found out that the person who created the fake firms worked in tandem with a commission agent, who used to sell these goodless invoices to established firms for commission, (both directly and through different brokers). The commission agent too has been arrested.
Moreover, in this chain from the financial movement it was determined that established firms (end-users) would make transfers to these fake firms. From here, the amounts would then be transferred to the account of a private limited company. From there, the CA in question would withdraw and return the amount in cash after subtracting the commission of his company along with his own.
The amount of cash transactions was close to Rs. 30-40 lakh per day.
The investigation spanned across several locations. Based off of verifications, evidence and statements recorded, it appeared that these 3 people, that is, the creator of fake firms, the commission agent and the CA were operating in tandem orchestrating this racket of making fake firms on forged documents and having passed on fraudulent ITC amounting to Rs 121 crore.