Commercial Taxes Dept Cracks Down Massive Rs 1,420 Crore Fake ITC Racket in Bengaluru; Two Arrested:

Commercial Taxes Dept Cracks Down Massive Rs 1,420 Crore Fake ITC Racket in Bengaluru; Two Arrested The Commercial Taxes Department has arrested two key individuals in Bengaluru for running a massive bogus input tax credit (ITC) racket. The arrested accused have been identified as Nayandahalli-based Salimulla Baig, proprietor of SKS Traders, and Haseen Baig, proprietor of KH E-Waste Recycle.

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The department had made these arrests during a joint operation organised by the enforcement wing (south zone) and the intelligence division of the commercial taxes department. The racket involved suspicious transactions worth Rs 72,384 crore and fraudulent claims worth Rs 1,420 crore. As of now, the department has arrested a total of seven individuals in fake ITC cases this year. According to the sources, the accused used to create fake tax invoices without actual movement of goods and used to avail ITC (Input Tax Credit) fraudulently. This had caused a major loss to the state exchequer. Salimulla Baig (59 years old) had allegedly claimed bogus ITC amounting to approximately Rs 7,382 crore through suspicious transactions worth around Rs 12,172 crore.

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These transactions were routed through 72 fake supplier companies. Haseen Baig (35 years old) is accused of fraudulently availing nearly Rs 738 crore in fake ITC through transactions worth Rs 7,212 crore involving 55 fake supplier entities.