Directorate General of GST Intelligence busts Rs 30cr fake ITC network
Chandigarh: In a crackdown on financial fraud, the Directorate General of GST Intelligence (DGGI), Chandigarh Zonal Unit, on Friday claimed to have busted a network involved in generating fraudulent input tax credit (ITC) through the issuance of invoices without the actual supply of goods. Preliminary probe indicated a widespread network of bogus firms, with the quantum of fraudulent ITC currently estimated at approximately Rs 30.21 crore.
The authorities anticipate the figure to increase as the investigation progresses. The intricate scheme involved multiple business entities, including a smelting firm located in Ludhiana, found to be issuing fake invoices for zinc products. The investigation has resulted in the arrest of the alleged mastermind, Manmohan Singh, who was instrumental in establishing and operating this racket, creating the aforementioned firms to generate and avail ineligible ITC.
Manmohan is alleged to have colluded with other individuals, currently under the agency's scanner, to facilitate banking transactions and arrange cash movements in exchange for commissions to enable these illicit activities. The firms included JHA and JHA Enterprises, Goyal Trading Agency, MAA Vaishno Enterprises, SS Enterprises, PC Techno Solutions, and PMI Smelting Private Limited.
"Given the severity of the offense, the substantial financial fraud involved, and the potential for evidence tampering and witness influence, Manmohan Singh has been remanded to judicial custody," said an official spokesperson of the DGGI.
