Input tax credit fraud: GST officials arrest a Delhi-based man over fraud allegations worth Rs 43 crore

An individual named Ravinder Kumar has been arrested by the Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana. New Delhi-based Kumar also called Ravinder Garg was apprehended over charges of creating and operating fictitious firms on forged documents which were used in availing of and passing on Input Tax Credit (ITC) on bogus Invoices without actual receipt and supply of goods or services.

The tax officials claimed that Kumar had admitted to having created two private limited companies, one partnership firm and multiple proprietorship firms which have generated sham invoices without goods amounting to Rs 237.98 crore and passed on fake ITC amounting to more than Rs 43 crore.

The accused created multiple proprietorship, partnership firms and private limited companies based in Haryana, New Delhi and Jharkhand merely on paper. He kept eluding the investigation and did not appear before the investigating authorities even after the issuance of summons on multiple occasions.

It was found that he was absconding and kept changing his locations. The officers kept watch on his frequent places and after a long period of monitoring and active surveillance, he was nabbed.

After the arrest on March 9, he was produced before the Metropolitan Magistrate, New Delhi, who ordered 14 days of judicial custody. At present, further investigations in the matter are in progress.

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