DGGI Gurugram officials arrest 2 men for defrauding exchequer of more than Rs 690 crore

In an ongoing investigation the Directorate General of GST Intelligence, Gurugram Zonal Unit, were able to arrest two gang members of a fake invoicing syndicate, namely Shri Vikas and Shri Manish, who were involved in GST fraud by way of issuance of fake GST invoices in excess of Rs 4,800 crore which defrauded the exchequer of more than Rs 690 crore.

Both the accused, resident of Sirsa, Haryana, had relocated to Nepal in a bid to escape being caught and to perpetuate the fraud. After a tip off they were nabbed and were found to be in possession of huge incriminating documents and gadgets in the form of multiple laptops, multiple smart phones, debit cards, PAN and Aadhar details of multiple persons, multiple notary stamps etc. Both the accused were arrested and were sent to Judicial custody. Analysis of the huge data is underway and involvement of other people and companies cannot be ruled out. The entire scam was orchestrated by using various high tech apps and messaging services which did not require use of direct calling. They were actively collaborated by other masterminds in different parts of the Country.

This present arrest is in continuance of the case in which DGGI, GZU had earlier arrested Shri Kabir Kumar who was caught at the airport while fleeing the city and had been arrested for ITC fraud of Rs 527 crore.

Based on evidences available and statements recorded, hundreds of fake firms have been created on the basis of PAN and Aadhar cards of unknown persons whose data have been procured by a separate syndicate. The fake firms have been found to have created fake invoices in excess of Rs 4,814 crore. Therefore, the accused were arrested on 08.03.2021 and produced before the Duty MM and have been remanded for 14 days of judicial custody.


DGGI Gurugram officials arrest man for defrauding exchequer in excess of ₹ 13.76 crore

The Gurugram Zonal Unit of Directorate General of GST Intelligence has arrested a person, namely Mr. Pradeep Jain, resident of Muzaffarnagar, UP who is Director of M/s PSR Metals Pvt Ltd, Muzaffarnagar.

An investigation was conducted against M/s PSR Metals Pvt Ltd located at Khasra No 362/2, Near Begrajpur Industrial Area, Village HussainpurBopada, Muzaffarnagar, UP-251001 by way of visits conducted at the registered address of the said company. During the investigation, Mr. Pradeep Jain, Director of M/s PSR Metals Pvt Ltd. claimed to procure both old and non-guarantee batteries from various registered and unregistered dealers and also claimed to manufacture lead from old batteries and doing trading of new batteries (termed non-guarantee batteries). It is pertinent to mention here that in GST regime, old/scrap batteries are taxed at 18% GST rate and new/fresh batteries are taxed at 28% GST rate. However, verification with their suppliers revealed that they had sold only fresh batteries to M/s PSR Metals Pvt Ltd.

Confronted with these facts, Mr. Pradeep Jain now claimed that they were also manufacturing lead from these new batteries, whereas earlier he claimed only trading of the same. Investigation showed that it was not economically viable to manufacture lead from destroying and breaking down fresh batteries to pick miniscule lead therein. It appeared that they were actually using bazaar scrap to manufacture such lead and was using the ITC of fresh batteries while clearing these new batteries without issuance of invoices.

Thus, Mr. Pradeep Jain, was found to have defrauded the exchequer in excess of ₹ 13.76 crore. by clearance of goods without issue of invoices. He was therefore arrested on 27.02.2021 under section 69 of the CGST Act, 2017. The Magistrate sent him to Tihar Jail for 10 days’ Judicial Custody. Further investigation in the matter is under progress


DGGI Gurugram arrests man for fraudulently availing input tax credit of more than Rs 69 crore

The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Shei Surender Kumar Gupta resident of New Delhi on charges of availing and passing on fake input tax credit by way of receipt/issuance of invoices without any actual supply of goods or services.

It is apparent from the investigation conducted till date, that Shri Surender Kumar Gupta, Director of M/s. Mystic Exim Pvt. Ltd., M/s. Landmark Traders Pvt. Ltd. and Controller of M/s. JKM Impex forged documents to show receipt of goods in his above mentioned companies/firms from multiple fictitious/non-existent entities, which never existed at their given addresses.  The entities of Shri Surender Kumar Gupta had further passed on the fake ITC to multiple exporter firms, who had further encashed such ITC through fraudulent IGST refunds.

The investigation spanned multiple locations in Delhi/Gurugram and based on documentary evidence and statement recorded, it was ascertained that Shri Surender Kumar Gupta is a key person in orchestrating this racket of availing fake ITC.

Accordingly, Shri Surender Kumar Gupta was arrested on 05/02/2021 and produced before Duty Magistrate, Tihar Complex, New Delhi, who ordered judicial custody.  From the investigations conducted till date, it appears that the total value of goods involved in the subject transactions is more than Rs. 600 crore and the total fake ITC availed by entities of the accused is more than Rs. 69 crore.

Further investigations in the matter are under progress.