The Anti-Corruption Branch (ACB) has arrested three key conspirators and four proprietors of fake firms involved in a massive GST refund scam amounting to Rs 54 crore. The investigation has so far uncovered forged invoices worth approximately Rs 718 crore. Earlier, the ACB arrested seven individuals, including a GST officer from the Delhi government and three advocates, in connection with the scam.
ACB Chief Madhur Verma shared that the scam came to light after the Vigilance Department noticed irregularities involving Babita Sharma, a former GST officer. Sharma, who worked in Ward No. 6 until July 2021, approved the migration of 53 firms to Ward No. 22 within a short span of time. Suspecting foul play, the Vigilance-GST Department initiated physical verification of these firms in September 2021. The inspection revealed that these firms were nonexistent and non-functional.
Following these findings, Additional Commissioner (Trade & Taxes) Vivek Aggarwal ordered a detailed inquiry, which was handed over to the ACB for further investigation. The ACB registered an FIR under the Prevention of Corruption Act and began its probe into the fraudulent activities.
During the investigation, the ACB discovered that fraudulent GST refunds were approved by Sharma without verifying Input Tax Credit (ITC), which is a crucial tool for identifying bogus refunds. The scam led to significant losses for the government. The fake firms were found to have claimed fake purchases amounting to Rs 718 crore, with the businesses existing only on paper.
The investigation uncovered over 1,000 bank accounts linked to the fake firms, their employees, and family members. The final money trail led to the arrest of several individuals, including advocates who were found to be the beneficiaries of these fraudulent refunds.
The latest arrests include three conspirators: Akram Ali, Vikesh Kumar Bansal, and Ankur Saluja, along with four proprietors: Hanzala, Imran, Intzar, and Pramod Kumar.
The Directorate General of Goods and Services Tax Intelligence (DGGI) has recently launched a nationwide investigation into a large-scale GST evasion racket, uncovering over 200 fake companies involved in fraudulent transactions. The Ahmedabad Crime Branch, acting on intelligence provided by DGGI, conducted raids at 14 locations across multiple cities, including Ahmedabad, Surat, and Bhavnagar. The investigation has revealed multiple fraudulent ITC claims worth crores and is ongoing.
