Ahmedabad: The Directorate General of GST Intelligence (DGGI) has arrested three persons in connection with two separate fake billing cases that allegedly defrauded the government of over Rs 262 crore in input tax credit (ITC).
Investigations revealed a large-scale fake invoicing racket involving fraudulent ITC of Rs 252.6 crore, with taxable turnovers of Rs 1,403.66 crore, spanning sectors like iron and steel, chemicals, cement, agriculture, and construction.
Over the past two months, coordinated searches in Ahmedabad, Jamnagar, and Mumbai recovered incriminating documents, digital records, and mobile devices. Authorities found that several non-existent private limited companies were created using dummy directors, issuing bogus invoices without any actual supply of goods or services.
The syndicate reportedly routed invoice amounts via RTGS to lend legitimacy and returned cash through hawala channels, minus commissions. Forensic examination of digital devices is ongoing to identify all beneficiaries.
Ahmedabad resident Rizwan Khoja was identified as the mastermind, controlling 17 GST-registered firms through associates, staff, and relatives. He allegedly provided mobile phones to his team, replacing them periodically to evade scrutiny. Lalit Jain acted as a broker, selling fake invoices to industry players for commission. Both were arrested on Jan 22 under Section 69 of the CGST Act and remanded to five days’ custody.
In a separate case, Memon Mohamadafwan, controller of M/s Rajanji Entreprise, was arrested on Jan 20 for availing Rs 9.29 crore ITC through bogus bills worth Rs 52 crore issued by 27 fictitious entities. He was remanded to 14 days’ judicial custody.
This is a follow-up to an Rs 800 crore fake billing scam, involving Rs 162 crore of fake ITC, in which Ritesh Shah was arrested in Dec 2024 and later taken into custody by the Enforcement Directorate, Mumbai.
DGGI officials confirmed that scrutiny of all recipients of fake bills is ongoing, and strict legal action will be taken against violators.
