Mumbai: Shemaroo Entertainment Accused of Rs.133.60 Crore GST Evasion Scam
Alleged GST Evasion: Shemaroo Entertainment Pvt Ltd and Top Executives Under Scrutiny
The Department of Central Goods and Services Tax has made startling accusations against Shemaroo Entertainment Pvt Ltd and its top executives, leading to a significant legal entanglement.
Arrests and Bail
On September 6, 2023, the department arrested the Joint Managing Director, Atul Maru, Chief Executive Officer and Director, Hiren Gada, and Chief Financial Officer, Amit Haria, for their alleged involvement in a Goods and Services Tax (GST) evasion amounting to Rs 133.60 crores through 20 fictitious firms. However, they were granted bail by a magistrate’s court the following day. The department has since sought the cancellation of their bail, with the matter pending a hearing at the sessions court. According to the agency, these individuals are seen as the masterminds behind the purported fraud, causing considerable financial loss to the government.
Prosecution Complaint and Investigations
A prosecution complaint has been lodged against Shemaroo Entertainment and the implicated executives. The complaint alleges the creation of 20 bogus firms through which the GST evasion was orchestrated. Investigations have revealed an active involvement by the accused in the establishment and management of fraudulent business entities. Furthermore, they are said to have engaged in the utilization of ineligible input tax credit (ITC) amounting to Rs. 133.60 crores. The department also points out the availing of input tax credit from non-existent suppliers, ultimately leading to a substantial revenue loss for the government.
