Bengaluru: The Commercial Taxes Department Enforcement Wing (South Wing) has busted a massive inter-state fake invoice racket involving ₹ 1,464 crore and arrested four persons in this connection.
The arrested include two brothers from Tamil Nadu -- Obraz Ahmed and Nafiz Ahmed, who floated several fake firms including Trion Traders, Wonder Traders, Royal Traders and Galaxy Enterprises, were arrested from Pernampattu, while two others -- Eddala Pratap and Revati, who floated shell entities called Power Steel and Cements, PR Constructions, SV Traders and SRS Cement and Steel Traders were arrested from Bengaluru.
According to the Commercial Taxes officials, the four had generated fake inward and outward supply transactions using forged and fabricated documents, resulting in wrongful availment and transfer of Input Tax Credit (ITC) without any actual movement of goods. The four had shown that they were dealing with material like cement, iron and steel and other building material across Karnataka and Tamil Nadu.
On a tip off, the Enforcement Wing conducted coordinated searches and seized operations simultaneously at multiple locations in Bengaluru, Chennai, Vellur and Pernampattu. During the raids, the officials confiscated 24 mobile phones, 51 SIM cards, two pen drives, bank statements and several rubber stamps belonging to different business entities.
All the four were produced before Bengaluru Special Court for Economic Offences and have been remanded to judicial custody.
