The Directorate General of GST Intelligence (DGGI) of Gurugram Zonal Unit (GZU) in Haryana on Monday arrested two more people in Rs 176 crores Input Tax Credit (ITC) fraud case, said the Ministry of Finance.
As per the statement released by the ministry, DGGI had earlier busted a case wherein a total fake ITC of Rs 176 crores had been fraudulently passed on by Sanjay Goel and Deepak Sharma. The two had been arrested earlier by the DGGI.
"On further investigation, the role of two more key persons, Manish Modi and Gaurav Agarwal has also been surfaced," read the statement.
"Based on details revealed by further investigation, this office has arrested Manish Modi, Chartered Accountant and a resident of Pitam Pura, New Delhi, on charges of creation of running racket of the fake firm in order to fraudulently pass on fake ITC without actual supply of goods or services," it added.
The ministry also said that Modi was managing fake firms through which he had fraudulently passed on fake ITC to the tune of Rs 36 crores and he was also found in possession of incriminating evidence indicating the presence of many such firms for which further investigation is going on.
The DGGI also arrested Gaurav Agarwal on similar charges for involvement in the instant racket of fraud ITC. He had fraudulently passed on fake ITC amounting to Rs 15 crores (including GST and Cess).
Modi and Agarwal were arrested on Monday and produced before the duty magistrate in Delhi who ordered judicial custody of the two for 14 days.
Further investigations in the matter are in progress.
