A Vapi-based chartered accountant (CA), Kanti Patel, has been arrested for allegedly defrauding a Navsari builder, Smit Patel, by misappropriating Rs63 lakh in Goods and Services Tax (GST) payments.
Between 2019 and 2023, Patel received money from Smit for GST, Income Tax, and TDS (Tax Deducted at Source) payments for his company, Shraddha Construction. However, instead of transferring the funds to the tax department, Kanti issued fake challans.
The fraud began in 2019-20, when Smit transferred Rs3 lakh to Kanti’s accounts for outstanding GST payments. This was followed by additional payments: Rs29.58 lakh in 2020-21, Rs 17.43 lakh in 2021-22, and Rs 13.17 lakh in 2022-23, bringing the total to Rs63.45 lakh.
In 2023, when Smit received a summons from the GST department for non-payment, he sought Kanti’s assistance. The CA assured him the issue would be resolved and provided four challans as documentation. However, when verified on the GST portal, these challans were found to be fake.
After Kanti agreed to cover the pending amount and signed an agreement, the Surat GST department sent Smit an email summons to appear regarding the unpaid taxes. When Smit approached Kanti for clarification, the CA dismissed the notification as “insignificant.”
Upon visiting the GST office, Smit discovered that Kanti had not made any payments, leading to a complaint at the Vapi GIDC police station. The police have since arrested Kanti Patel in connection with the fraud.
