DGGI detects Massive Rs.8,000 Crore GST Fraud by 246 Fake Firms; Mastermind Arrested

The Directorate General of GST Intelligence (DGGI) Officials have discovered a major fraud scheme involving fake firms in Pune that was formed in the name of an autorickshaw driver. The fraud is estimated to be worth between Rs.5,000 crore and Rs.8000 crore.

DGGI officer, Rushi Prakash from the Pune Zonal Unit, filed an FIR (first information report) at the Koregaon Park police station on Friday about the case.

The main accused, Ashrafbhai Ibrahimbhai Kalavadiya, 50, of Surat, Gujarat, reportedly set up 246 fake GST companies to carry out fraud. The police have also charged several other people under various provisions of the Indian Penal Code (IPC) and the Information Technology Act.

The probe began in October 2023, when the DGGI team discovered several suspicious transactions associated with an online account named “Pathan Enterprises”. The detectives discovered that the firm, registered under the name Pathan Shabbir Khan Anwar Khan, did not exist. When approached, Khan, who operates an autorickshaw, stated that he had no knowledge of a company established in his name.

Authorities discovered that multiple fake GST companies used a single mobile number and email address. Additionally, an ICICI Bank account in Rajkot, Gujarat, was found in the name of Jeet Kukadiya. Kukadiya, a private security guard, stated he opened the account for the accused, Kaushik Makwana and Jitendra Gohel, and that he never used it for any transactions.

Kalwadia has been arrested and presented before the Shivajinagar court in Pune, where he has been remanded to judicial custody for 14 days.

DGGI officials have conducted raids in several locations, including Pune, Mumbai, Rajkot, and Bhavnagar, and the investigation is ongoing.