GST Fraud of Rs.10000 Crore: 3000 Shell Companies Created on Fake Information

Sanjay Dhingra was arrested by the Directorate General of GST Intelligence (DGGI) for committing a Rs.10,000 crore GST Fraud by forming 3000 shell companies using fake data.

The Central Government has enlisted the help of other intelligence agencies in hunting down members of the Syndicate, which has clout in multiple states and can set up shell firms. The DGGI formed special teams, and an examination of data revealed that these 1,000 operating shell businesses had avoided paying more than Rs 700 crores in Goods and Services Tax (GST). Following a search and seizure operation, the end consumers of these bogus GST were discovered on an all-India basis.

The Noida Police have detained another individual in connection with a Rs 10,000 crore GST fraud case involving the creation of phoney GST numbers on bogus databases. The Police had detained eight members of an interstate gang in this instance.

Sanjay Dhingra, the promoter of Good Health Industries Pvt Ltd, which manufactures the ‘Dairy Best’ brand of desi ghee, was detained by the Directorate General of GST Intelligence.

When questioned, Dhingra stated that they had formed roughly 3,000 firms, 1,000 of which were completely operational and had generated e-way bills. When these active firms were inspected, the tax scam fraud numbers of around Rs 700 crore came to light. In this situation, a dedicated intelligence team has been established to focus on arresting this sort of racket in several states.

Dhingra is estimated to have cheated the GST department of Rs 63 crore.