CGST Delhi South Commissionerate Arrests Director’s Son in Rs 60.59 Crore Bogus ITC Fraud
The Anti-Evasion Branch of the CGST Delhi South Commissionerate, in a massive fraud involving the availment of bogus ITC (Input Tax Credit) worth Rs 60.59 crore using fraudulent invoices amounting to Rs 397.23 crore, has apprehended the son of a beneficiary company’s director.
The investigation unearthed that one of the companies involved in this fraud does not exist in reality and was a non-functional entity involved in passing bogus ITC without the actual movement of any goods or services. When a search was conducted at the registered location of the accused entity, the officials could not find any evidence in relation to genuine commercial activity, stock, invoices, or financial records. Instead, the location was being used as a co-working space.
Further investigation revealed that the key beneficiary company in this fraud was found to be engaged in smartphone trading. The son of the beneficiary company’s director was found to be managing and controlling its business operations and financial transactions in the fraud, and he had knowingly claimed fake ITC using bogus transactions that were supported only by paper invoices.
When the statements, money flow, and transaction records were deeply examined, officials noted that there was a well-planned network created only to cheat the government out of its revenue. The offence committed involved intentional violation of the provisions of Section 16 and is punishable under Section 132 of the CGST Act, 2017, which ultimately resulted in the arrest of the mastermind accused. He has presently been remanded to judicial custody for 14 days.
