Pune: In a significant breakthrough, the Directorate General of GST Intelligence (DGGI) has unearthed a fraudulent scheme where fake GST firms were created to evade government taxes to the tune of ₹5,000 to ₹8,000 crores.
The scam involved generating bogus GST invoices and routing them through multiple fake firms, all without any actual sale or transaction taking place.
The complaint, filed by GST Intelligence Officer Rishik Kaluram Prakash at the Koregaon Park Police Station, details the role of multiple individuals in the elaborate tax evasion network.
Among those named in the report are Ashrafbhai Ibrahimbhai Kalavadia from Surat, Gujarat; Nitin Berge from Ghatkopar, Mumbai; Faizal Mewawala from Kambeikar Street, Mumbai; Nizamuddin Khan from Diva Highway, Bhiwandi; Amit Tejbahadur Singh from Ulhasnagar, Mumbai; Rahul Batukbhai Baraiya, Kaushik Bhupatbhai Makwana, and Jitendra Mukeshbhai Gohel, along with other unidentified individuals.
According to preliminary police investigations, the accused allegedly collaborated to set up numerous fake GST firms, utilizing fictitious bank accounts, forged rubber stamps in various company names, and fraudulent SIM cards.
These resources were used to establish fake companies that produced false GST invoices. These invoices claimed large volumes of non-existent transactions and were circulated among different firms, enabling the suspects to bypass substantial government taxes.
The fraudulent activity reportedly occurred from September 2018 to March 2024. Authorities estimate that the scam may have defrauded the government of ₹5,000 to ₹8,000 crores.
The investigation, led by Senior Police Inspector Runal Mulla, is ongoing as the police work to identify additional suspects and document the extent of the tax evasion.
