Police Officers Busted a Gang of Creating Fake Firms to avail GST Refunds worth Rs.116 Crore

The Ludhiana police claimed to have busted a gang that had obtained GST refunds of Rs.116 Crore by forming a bogus firm in the name of a city resident. The fraud was discovered after the GST Department sent a notice to a resident regarding fake GST returns obtained by his company.

Later, the victim filed a police report, and the investigation resulted in the busting of the racket.

The suspects are Hardeep Singh, a resident of Vishwakarma Colony, Sukhdev Singh of Harkrishan Nagar, Ranjit Singh Babbar of Gill Road, Sumit Kumar of Labour Colony, Harpal Singh, and an unidentified individual.

The complainant, Amandeep Singh, who filed a police report in the case in July of last year, claimed the suspects used his Aadhaar card, PAN card number, and photograph to obtain a GST number from the Delhi GST Department. They established a fake company, Nanak Enterprises, by forging his identification.

The gang members also issued fake bills using other organizations and claimed GST refunds, resulting in a loss of crores to the GST Department.

The complainant stated that when he learned about the bogus firm under his name last year, he filed a police complaint, and a case was registered following a long investigation.

According to the police, after filing a complaint, a further investigation was initiated, and numerous other people who may have been involved in the racket would face charges as well. The suspects are facing charges under Sections 419, 420, 120-B, 465, 468, and 471 of the Indian Penal Code, as well as Sections 66C and 66D of the Information Technology (IT) Act.