Thane: The Maharashtra State Tax Department (Thane Zone) arrested a Mira Road resident, identified as Srikanth Vaidyanath, for his alleged role in generating and passing on fake Input Tax Credit (ITC) worth Rs 8.43 crore through a non-existent firm. The arrest was carried out by the State Tax Investigation Branch, Bhayandar, following a detailed probe into suspected fraudulent GST activities.
Details Of The Scam
According to a Mid-day report quoting officials, Srikanth was listed as the proprietor of M/s Srikanth Enterprises, a firm that cops believe existed only on paper. When tax officers visited the firm’s registered business address, C-118, Mira Darshan Complex, MTNL Road, Jangid Circle, they reportedly found no evidence of commercial operations. The premises lacked essential records such as invoices, stock registers and ledger books, strongly indicating that the entity was merely a shell company used for bogus transactions.
Preliminary inquiries revealed that Srikanth had obtained GST registration by submitting his PAN card, Aadhaar, and an electricity bill, completing the process via OTP-based authentication. However, during physical verification, his family members, including his parents and wife, denied any awareness of a business being operated in his name, further confirming suspicions about the fraudulent nature of the enterprise.
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Fake ITC Worth Over ₹8 Cr Availed
The investigation found that the accused availed fake ITC worth Rs 8.43 crore from M/s Vishal Enterprises and later passed on the same ineligible credit to M/s Shree Kuldevi Industries Pvt Ltd during May and June 2025. Officials stated that the entire operation was conducted using bogus invoices and electronic entries without any actual movement of goods or stock, violating provisions under the Goods and Services Tax Act.
Srikanth was arrested on November 7 under relevant sections of the GST Act and produced before a court, which remanded him to judicial custody. A senior officer from the Thane Zone told Mid-day that further investigation is underway to identify other beneficiaries and uncover additional shell firms connected to the racket. Authorities are now tracing the money trail and examining linked entities and bank transactions to determine the full extent of the fraudulent network.
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