Delhi EOW Unearths Dual GST Fraud Rackets; Eight Arrested

The Economic Offences Wing (EOW) has arrested eight individuals for orchestrating two separate GST fraud cases.

The first case pertained to a Rs 128-crore bogus GST invoicing racket, in which the police have apprehended six accused for reportedly generating fake invoicing for availing incorrect ITC (Input Tax Credit) worth Rs 10 crore using shell companies.

Some of the accused have been identified as Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohammad Waseem, Dixit, and Abid. As per the police, Dixit has studied up to the 12th standard; he is found to be the key mastermind in creating 250 bogus companies and planning fraud using them. Aman and Vibhash had failed to qualify as Chartered Accountants (CAs) and were employed in the role of accountants; they both helped in orchestrating the fraud.

The fraud was unearthed, followed by a complaint registered by an individual claiming that the accused had sought his personal and financial details in return for a false promise of providing him a secure job in the GST department; however, the same were misused to create a fake company.

Ravi Kumar Singh, the Additional Commissioner of Police (EOW), said, “Analysis of GST records, banking transactions, and digital evidence revealed that Dilip Kumar and Raj Kumar Dixit were the main conspirators. “ During the investigation of the case, the police had found Rs 51 lakh in cash.

In the second case, two accused were arrested by the police; one was a qualified chartered accountant, and the other was an M.com graduate. The arrest was again followed by a complaint received by the police on August 06, 2020, from an individual claiming his company’s VAT/GST credentials were misused by the accused for carrying out transactions amounting to Rs 28 crore.

Subodh Kumar Goswami, DCP (EOW), said that “amounts credited from various entities were immediately withdrawn in cash or transferred to multiple beneficiary accounts through RTGS, NEFT, and other banking channels without any corresponding genuine business activity.”