Man Behind ₹176 Crore Tax Fraud Held While Trying To Flee Country

A 34-year-old man who is accused of being the brains behind a phoney input tax credit scheme that cost the government 176 crore rupees by forming fictitious firms in the names of the underprivileged and issuing false invoices was apprehended as he tried to depart the country.

According to representatives of the Goods and Services Tax (GST) Intelligence Unit, the resident of Chennai and his collaborators obtained the Aadhaar and PAN numbers of low-income individuals by promising them bank loans, and after that, they registered a number of phoney businesses in their names. 

Fake companies and invoices

As per news reports, the alleged mastermind created fictitious companies and raised invoices to the tune of 175.88 crores for a taxable value of 973.64 crores.

Following the arrest of the man's accomplice on June 22, the mastermind was apprehended at Bengaluru Airport the following day as he attempted to depart the country on the basis of information provided by him during his interrogation. 

Remote access software, foreign SIM cards, expensive phones

According to officials, the scam was committed by very cautious individuals who used remote access software, foreign SIM cards, and expensive phones. However, to find them, the intelligence unit tracked their IP addresses, examined their cryptic WhatsApp conversations, and carried out simultaneous searches at many different places. 

As per reports, 20 GST registrations have been terminated, 25 bank accounts have been suspended, and mobile phones, modems, laptops, and SIM cards have all been seized.