Rs. 10000 Cr GST Bogus ITC Fraud: Noida Police apprehends Mastermind

Top Stories Rs. 10000 Cr GST Bogus ITC Fraud: Noida Police apprehends Mastermind Police arrests 29 Year Old in a Whopping 10000 Crore GST Input Tax Credit Fraud By Manu Sharma – On February 28, 2024 5:38 pm – 2 mins read Delhi resident Vikas Dabas, aged 29, identified as the prime suspect, was apprehended on Monday by the Noida police in connection with a massive ₹10,000-crore Goods and Services Tax ( GST ) Input Tax Credit ( ITC ) fraud. Shakti Avasthy, Deputy Commissioner of Police ( Crime ), leading the investigation, revealed that Dabas had allegedly orchestrated the scam by establishing thousands of fraudulent firms using stolen or fake identities. This elaborate scheme involved generating e-way bills and claiming input tax credit ( ITC ) from the government.

Dabas, who had been evading authorities by frequently changing his location nationwide, was finally apprehended when he visited his residence in Delhi on Monday. He was subsequently remanded in judicial custody on Tuesday. The arrest brings the total number of individuals detained in connection with the fraud to 30. The Noida police had uncovered the fraudulent activities last June, arresting eight suspects and seizing a list of over 3,000 bogus companies registered with fake PAN card details. These companies were allegedly used to create e-way bills, essential for transporting consignments, as part of the illicit operation. Shakti Avasthy emphasized that Dabas had been a prime suspect since the initial arrests last year, actively participating in the fraud for the past five years.

The gang, involving multiple members, created fake documents such as Aadhaar cards, PAN cards, rent agreements, and electricity bills to establish bogus firms with GST numbers. Dabas also played a role in selling these firms to individuals seeking GST rebates, causing significant financial losses to the government.

Last October, the Noida police announced a ₹25,000 reward for Dabas’ arrest, as he had been on the run since the gang’s exposure. Additionally, the suspect has been booked under relevant sections of the Indian Penal Code, including cheating (section 420) and forgery-related offenses (sections 467, 468, and 471), along with charges of criminal conspiracy (section 120 B). In a recent development, Noida Police has attached properties worth ₹5 crore belonging to two other suspects involved in the scam who remain at large. This attachment was made under section 83 (Attachment of property of person absconding) of the Criminal Procedure Code (CrPC).

On June 11, Directorate General of GST Intelligence ( DGGI ) had arrested another Individual in a similar case. Read More: Rupees 10,000 Crore GST fraud: 3000 Shell Companies Created on Fake Details The Directorate General of GST Intelligence arrested Sanjay Dhingra, the promoter of Good Health Industries Pvt Ltd, which is engaged in manufacturing of ‘Dairy Best’ brand of desi ghee. Upon interrogation, Dhingra revealed that they had created around 3,000 companies, out of which 1,000 fake companies were fully active and e-way bills were made from them. When these active companies were investigated, the tax scam fraud figures of about Rs 700 crore have come to the fore. In this case, a separate intelligence team has now been deployed which will work to arrest this type of racket in different states.

Leave a Reply