Surat Businessman arrested for Rs. 2 Crore GST Fraud

The Thane police’s Economic Offence Wing (EOW) detained a Surat-based businessman on Wednesday for allegedly defrauding his partner out of Rs. 2 crore.

According to a police officer, Kailash Kothari (41), who boasted of his experience in the garment industry, persuaded the victim to make him a 50% partner in a new garment company in June 2020. This is the second arrest in the case, after D Singh (41), who attempted but failed to secure anticipatory bail in 2022.

A police official stated, “Without the victim’s knowledge, Kothari deceitfully established two companies in his wife’s and an associate Singh’s names. The accused also faked invoices and GST numbers, diverting payments from clients to the accounts of his wife’s and associates’ businesses.”

According to a police officer from EOW Thane, the victim’s firm suffered Rs. 2 crore loss as a result.

A case was then registered and transferred to the EOW Thane in June 2022.