Mira-Bhayandar: Multi-Crore GST Refund Scam Busted In Kashimira; 1 Held, 2 Absconding

Mira-Bhayandar: Multi-Crore GST Refund Scam Busted In Kashimira; 1 Held, 2 Absconding

The accused apparently used GST registration to engage in unauthorised input tax credit activities through false invoicing without actual movement of goods.

Suresh GolaniUpdated: Monday, October 16, 2023, 09:47 PM IST
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Mira-Bhayandar: Multi-Crore GST Refund Scam Busted In Kashimira, 1 Held, 2 Absconding | Representative Image

Mira-Bhayandar: The Mira Bhayandar-Vasai Virar (MBVV) police claim to have unearthed a multi-crore goods and service tax (GST) related billing scam in which a trio obtained refunds of input credit tax from the government using fictitious companies, causing huge losses to the public exchequer. After receiving information about some suspects buying defunct firms or allegedly floating shell companies using forged and fabricated documents, a team from the economic offences wing (EOW) attached to the MBVV police swooped down on an apartment in the Hatkesh area of Kashimira.

Printers, rubber stamps, letter-heads seized

Apart from computers and printers, the team seized several rubber stamps, letter-heads and incriminating documents of several shell companies. Prima facie investigations revealed that the trio identified as- Ashuram Rabari (25), Nanjiram Rabari (28) and Praveen Rabari (25)- all natives of Rajasthan were using 12 s companies to generate e-way bills (GST related challans for transporting consignments) collectively worth crores of rupees.

The accused apparently used GST registration to engage in unauthorised input tax credit activities through false invoicing without actual movement of goods. The accused later claimed a refund from the GST department on the virtue of fake input tax credit. While Ashuram Rabari has been arrested his accomplices are still at large.

Case transferred to EOW

Sensing the seriousness of the crime, the case has been handed over to the Economic Offences Wing (EOW). “So far fraudulent claims worth a few crores have come to light. However, the fraud seems to be much bigger. We are coordinating with officials in the GST department to gauge the magnitude of the fraud.” said police inspector (EOW)-Shyam Apet.

Notably the arrested accused and his accomplice are school dropouts who were actively involved in the illegalities for more than a year. Meanwhile an offence under sections 420,465,467, 468, and 471 of the IPC has been registered at the Kashimira police station against the accused trio. Ashuram Rabari is in the custody of the EOW.

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