Mumbai News: Fake Cement Firm Owner Held For ₹10 Crore GST Input Tax Credit Fraud

Mumbai: The Maharashtra State Tax Department has arrested 44-year-old Santosh Vitthal Londhe, a resident of Vikhroli, in connection with a fraudulent Input Tax Credit (ITC) scam amounting to Rs 10 crore. Londhe, the authorised signatory of M/s Santosh Enterprises, is accused of availing and passing on fake ITC without any actual supply of goods or services.

His firm, registered at Shanti Shopping Centre in Mira Road, claimed to trade in cement, steel angles, and various iron and non-alloy steel products. However, during the investigation, officials found that the business did not exist at the registered address, and no commercial activity was observed, as reported by Times Of India.

According to the Maharashtra GST Department, between December 2024 and May 2025, M/s Santosh Enterprises declared an outward tax liability of Rs 10.03 crore. Despite this, no E-way bills were generated during the financial year 2024–25.

Similar Case

In a separate news story of the fraud, one arrested by CGST in the Rs 18.6 Crore Input Tax Credit Scam. The Investigation Wing of the Central Goods and Services Tax (CGST) Palghar Commissionerate, under the Mumbai Zone, has uncovered a bogus invoicing operation involving fraudulent availment and passing of ineligible Input Tax Credit (ITC) worth Rs 18.66 crore. One individual was taken into custody on Friday in connection with the case, officials confirmed on Sunday.

As per CGST officials, the accused proprietor of a firm came under scrutiny following specific intelligence inputs. After receiving a summons, he appeared before investigators and provided a statement, during which he admitted to having started the company on someone else's instructions.

Investigations revealed that the accused had illegally passed on Rs 8.80 crore worth of ineligible ITC and had availed Rs 9.86 crore in ITC through fake invoices, without any actual supply of goods or services. Following the collection of substantial evidence, the accused was arrested on Friday under the provisions of the CGST Act, 2017.