Surat GST Raids Unearth Rs 493 Crore Scam; Key Accused to Remain in Extended Remand

The Gujarat Goods and Services Tax (GST) department has uncovered a massive scam worth Rs 493 crore during raids on several firms in Surat. The investigations have implicated a prominent industrialist in fraudulent transactions, resulting in an extended custodial interrogation.

Suspicious Transactions Uncovered

Recent raids in Surat targeted eight additional companies linked to a copper industry venture, uncovering Rs 493 crore worth of illegal transactions. A businessman, a partner in Fortune Copper Industries, was arrested for issuing fraudulent bills to evade GST. Initially, he was placed on a three-day remand for questioning and evidence collection.

About the Racket

Investigations revealed that five firms issued bogus purchase bills worth Rs 108 crore. This enabled the fraudulent utilization of input tax credit amounting to Rs 19.45 crore, causing significant losses to the government treasury. The scam is part of a larger operation involving 14 firms across Surat, Rajkot, Bhavnagar, Bharuch, and Vapi, all engaged in the copper business.

Court Proceedings and Remand Extension

At the conclusion of the initial three-day remand, the GST department sought an additional 11 days to deepen the probe. Prosecution reports revealed that eight new firms had come under scrutiny, adding to the complexity of the case. Further investigation was deemed necessary to identify those responsible for creating fake e-way bills, managing financial transactions, and transferring funds into accounts linked to the bogus entities.

Despite the detailed request, the court granted only a three-day extension for custodial interrogation. Current efforts are focused on tracing the financial flows and identifying all individuals connected to the fraudulent operations.

Outcome of the Scam

The Rs 493 crore scam underscores significant loopholes exploited within the GST system. Authorities are working to ensure accountability and recover the treasury’s losses. As the investigation progresses, more critical details are expected to emerge.