Two Arrested for Generating Rs 4.17 Crore Bogus ITC Through Fake GST Firm:

The Economic Offences Wing (EOW) has arrested two men for allegedly generating and passing on fraudulent Input Tax Credit (ITC) worth Rs 4.17 crore through a fake GST-registered firm. The fraud reportedly caused a major loss of revenue to the Goods and Services Tax (GST) Department.

The accused have been identified as Pawan Raghav, a resident of Uttam Nagar, Delhi, and Mohit Kumar, a resident of Sagarpur in South West Delhi. They were arrested on July 21 by the EOW’s Meerut Sector as part of a special drive against wanted economic offenders.

The arrests were made in connection with Case No. 53/24, which is based on FIR No. 51/2024 registered at Mughalpura Police Station in Moradabad.

According to the investigation, the accused allegedly registered a fake firm named M/s Raghav Enterprises in Mughalpura, Moradabad, in 2024. The firm had no genuine business operations but was allegedly used to generate and pass on bogus ITC worth Rs 4.17 crore to buyers.

Investigators said Pawan Raghav provided his Aadhaar card, PAN card and Aadhaar authentication OTP to Mohit Kumar, which allegedly helped in the fraudulent registration of the GST firm.

The accused allegedly used forged documents and fake business details to obtain the GST registration. They then generated fake invoices showing the supply of goods or services, even though no actual transactions took place.

The arrests were made during a special campaign launched by the EOW Headquarters in Lucknow. The operation was conducted under the supervision of the SP, EOW Meerut Sector. The investigating team arrested both accused from the EOW Meerut office premises on Tuesday.