GST Fraud: HR Home Minister Anil Vij directs investigation to Haryana DGP; 3 Official Dismissed

After meeting with a delegation from the Institute of Chartered Accountants of India (ICAI), which has been protesting the arrests, Haryana home minister Anil Vij on Tuesday referred the investigation into the GST input tax credit fraud, in which two chartered accountants (CAs) were arrested last week, to the state police chief.

The ICAI is urging that an impartial agency conduct a thorough inquiry into the fraud and the complicity of CGST officials. The organisation had previously met with Union Finance Minister Nirmala Sitharaman following the suspension of a deputy commissioner and a superintendent at the CGST (Gurgaon) office on Monday.

On Wednesday, the Central Board of Indirect Taxes and Customs, which reports to the Union Ministry of Finance, issued an order transferring three senior CGST officers. Meenu Kumar, the commissioner from Gurgaon, has been shifted to the Siliguri CGST (appeals). The new CGST commissioner of Gurgaon will be Paul Rajendera Lakra, the commissioner (appeals) of the CGST Delhi zone. Additional commissioner Abhinav Yadav has been sent to the Bhubaneshwar CGST office, while deputy commissioner Gurgaon Ankit Agrawal has been assigned to the Lucknow CGST office.

Members of the organisation, who have been protesting in front of the CGST office in Gurgaon since May 20, said they are meeting with prominent political leaders from both the state and central governments to highlight the case and responsibilities of key CGST officials. “The CAs are used as scapegoats.” Fraud cannot be conducted without the active participation of CGST officials at many levels. Suspension or transfer of officials is insufficient. “We want them arrested and booked,” said Naveen Garg, chairman of the ICAI’s North India Regional Council.

He stated that an ICAI delegation met with Minister Anil Vij on Wednesday. “We presented our case to him and informed him on the facts of the case. He listened to us and forwarded the case to the Haryana DGP for further inquiry,” Garg added.

“If the arrested CAs are guilty, the court will decide their case,” said Mohit Singhal, chairman of the ICAI chapter in Gurgaon. But the question is, “When will action be taken against the CGST personnel involved?”

According to ICAI member Pradeep Yadav, they have also obtained support from the Gurgaon district taxation bar organisation. The ICAI intends to file a complaint with the high court and the Supreme Court against the CGST officers. “We want to take our legal battle to higher courts.” Bail applications will also be filed at the sessions court for the two CAs, according to Yadav. An anonymous complaint was lodged with the CGST on May 2 about bogus ITC claims totaling roughly Rs.15 crore. The CGST anti-evasion wing began an investigation into bogus reimbursements to eight firms on May 4 and searched their facilities.

Since then, the anti-evasion wing has expanded its inquiry to include 12 more entities. Sunil Mahalawat and Gaurav Dhir, both of Gurgaon, were detained on May 18 for giving certifications to two of the organisations for ITC refunds totaling crores in violation of Section 132 of the CGST Act (penalty for manipulating records or aiding and abetting fraud).

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