New Delhi: Delhi South CGST Commissionerate has unearthed a fake invoicing racket of Rs 611 crore and tax evasion of over Rs 38.5 crore, following searches and inspections conducted across locations spread across Delhi.
According to the Ministry of Finance, a cartel running 54 bogus firms registered in Delhi–NCR region was engaged in fake invoicing and circular trading. Incriminating documents such as rubber stamps and letter heads of various firms, mobile phones, laptops, etc., have been seized from the search premises.
“A specific intelligence was developed by the officers of Delhi South CGST Commissionerate concerning certain bogus firms that were created solely for the purpose of generating fake invoices and passing ineligible input tax credit along the chain,” said the Ministry.
“Preliminary enquiry conducted so far into these transactions has revealed that fake invoicing of around Rs 611 crore and tax evasion of over Rs 38.5 crore. The members of the cartel in their confessional statements have accepted their roles in managing these bogus firms,” said the Ministry.
The persons behind these bogus firms hatched the conspiracy to defraud the government and committed offences specified under Section 132(1) (b) and 132(1)(c) of the CGST Act 2017 which are cognizable and non-bailable.
Three key persons of the cartel - Ankit Gupta, the mastermind managing these bogus firms and two of his accomplice Rabiendra Singh and Rajendra Singh – were arrested on 23.02.2022. The accused were produced before the Duty Magistrate following which they have been remanded to judicial custody for 14 days. /BI/
