Fake invoices racket caught by Maharashtra GST Department

It was found that bank accounts used to pass on the ITC & receive the proceeds of the crime was handled by a Kolkata resident, Mr Chandan Ramprasad Agarwal

FPJ Web DeskUpdated: Tuesday, December 13, 2022, 03:51 PM IST
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Maharashtra GST Department after a comprehensive analysis, observed that a tax-payer namely, M/s. Vedam Enterprises had obtained benefits fraudulently using forged documents.

Further investigation into the matter it revealed that, the said tax-payer was not conducting any business activity and issued tax invoices with an intention to pass the tax credit of Rs 858 lakhs to his beneficiaries, which is located in West Bengal.

The activity caused a loss to the State of Maharashtra as the revenue to the tune of transferred credit got settled to other State.

It was found that bank accounts used to pass on the ITC & receive the proceeds of the crime was handled by a Kolkata resident, Mr Chandan Ramprasad Agarwal, aged 42.

Further the proceeds of crime were also utilized for the personal benefits of Mr Mayank Harkamal Singh, Age 26 who is Director in three different firms located in Thane.

These firms have field returns under GST with NIL turnover. Bank accounts used by these three firms revealed transactions of debit & credit entries worth Rs 3700 crores.

Amongst these, there are transfers from more than 850 suspected non-genuine parties amounting to more than Rs 940 crores. It surprise to note
that the cases against 99 entities found in banking trail were already booked and actions against them are ongoing at different offices.

The proceeds of Rs 130 crore was deposited to bank account related to Mayank Harkamal Singh by 99 entities.

Both the accused Mr Mayank Harkamal Singh, Age 26 & Mr Chandan Ramprasad Agarwal, age 42 who are the operators; handlers & beneficiaries of crime, were arrested today by Raigad Divisional Unit of Maharashtra State GST Department.

Hon'ble court no. 10 of JMFC, Vashi remanded both accused to judicial custody for the next 14 days, up to 23-12-2022.

This entire operation was carried out under the supervision of Mr Jayant Patil (Joint Commissioner Raigad Division), led by Mr Anand Patil (Dy Commissioner Investigation).

It is carried out by Mr Appasaheb Bhausaheb Patil (Assistant Commissioner of State Tax) & his team of co-officers & team of State Tax Inspectors in the Investigation Branch. Shri G V Bilolikar (Additional Commissioner, Thane Zone) provided the able guidance during this operation.

Including this arrest, Maharashtra State GST Department have made a total of 54 arrest in FY 2022-23, whereas the Zonal Units of Thane Zone have arrested 11 accused in different cases. The Department gave a strong signal that the Department would leave no stone unturned to nab the
criminals in such fraudulent tax-evasion rackets.

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