The GST intelligence officers have busted a syndicate operating 569 fake firms and passing on fraudulent tax credit of Rs 1,047 crore, the finance ministry said on Monday.
The Jaipur Zonal Unit of Directorate General of GST Intelligence (DGGI) has busted a major crime syndicate operating in 14 states, based out of Delhi.
The ministry said Delhi-based Rishabh Jain, aged 30, had hired 10 employees for operating these fake firms. After extensive recce and data analytics, the officials of DGGI, Jaipur were able to trace this mastermind in Delhi and nabbed him.
This syndicate has issued invoices having taxable turnover of Rs 6,022 crore involving input tax credit (ITC) of Rs 1,047 crore through these 569 fake firms to more than 2,000 beneficiary firms.
The majority of the fake firms are located in Delhi with presence in 13 other states -- Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam and Uttarakhand.
So far, 73 bank accounts used by syndicate and brokers have been attached.
Jain was arrested on June 25 and produced before Economic Offence Court, Jaipur, and is remanded for judicial custody till July 7, the ministry added.