DGGI Gurugram arrests 3 for input tax credit fraud of more than Rs 48 crore

In two separate cases, the Gurugram Zonal Unit (GZU) of the Directorate General of GST Intelligence (DGGI) has detained three people under the GST Act on accusations of running multiple fictitious enterprises on the basis of forged documents.

On the 5th and 9th of October 2021, two people were arrested in Delhi on suspicion of running a phoney billing racket involving more than 20 fictitious organisations, in which more than Rs 22 crore in illegal input tax credit was claimed, robbing the exchequer. Both people were arrested and brought before the CMM in Delhi, where they were sentenced to 14 days in judicial custody.

A resident of Pataudi, Haryana, was also detained in another case of false billing. He was discovered to be in possession of a large cache of incriminating documents, including phoney government stamps, various fake firms’ cheque books and ATMs, toll receipt book, “Dharam Kanta” or Weighing Station booklets, fictitious transporters booklets, and so on. The same were being used to demonstrate evidence of a fictitious supply of products for which a fictitious input tax credit was generated and passed on through a spate of fictitious businesses.

The person was detained on the 23rd of October 2021 under the terms of the GST Act on charges of defrauding the government of more than Rs 26 crore in GST, based on the evidence. The guy who was apprehended was sentenced to 14 days in judicial custody.

Both cases are currently being investigated further.