CGST Delhi Officials busts a Syndicate of 48 Fake Firms availing fraudulent ITC of over Rs.199 Crores; 3 Accused Arrested

The Central Goods and Services Tax (CGST) Delhi East Commissionerate has busted a syndicate of 48 interconnected fake firms availing fraudulent ITC of over Rs. 199 crores in “Operation Clean Sweep”.

Based on obtained human intelligence, the CGST Delhi East launched a coordinated “Operation Clean Sweep” against bogus billers, which was further refined through data mining and data analysis backed by on-the-ground intelligence.

In the initial phase of the operation, 48 fake/bogus firms – either non-existent or paper firms – doing business in bogus invoices were uncovered. These invoices were issued without the actual supply of goods or services, which is a violation of GST Law.

Three persons were apprehended and arrested and subsequently sent to judicial custody remand for two weeks by the Chief Metropolitan Magistrate Court, Patiala House.

Other syndicate members and ring leaders have been discovered, and more investigation is underway.

One of the held individuals, the proprietor of M/s M.K. Traders, was discovered to have obtained fake ITC of more than Rs. 5 crores, the majority of which was passed on to other connected links.

The other two arrested individuals were helping and abetting the syndicate and were instrumental in its operation. During the operation, incriminating material such as stamps from 55 different firms, SIM cards and documentation such as AADHAR cards, and electricity bills from a third party were seized.

The entire operation was conducted in difficult terrain, involving narrow by lanes and sensitive areas of Delhi – which was only possible due to amicable cooperation of Delhi Police which deployed adequate police personnel to assist the GST officers.

Further investigations are ongoing in the matter.