The Directorate General of GST Intelligence (DGGI) Jaipur Regional Unit has arrested Rakesh Kumar, the director of Square Insurance Brokers Pvt. Ltd., in connection with a GST fraud worth Rs 10 crore. The fraud involved 11 bogus firms and was uncovered after extensive investigation. Kumar was presented in court and subsequently remanded to jail.
Rakesh Kumar, whose office is located on the 5th floor of Trimurti Vijay Building at Ahimsa Circle, is accused of misappropriating GST collected on commissions earned from insurance policies sold to various insurance companies. Kumar allegedly created fake Point of Sales Persons (PoS), adjusting the commission and Input Tax Credit (ITC) from insurance companies in these bogus PoS accounts. The final proceeds were then funneled to a firm, Silver Square, which was registered under his wife’s name.
The DGGI conducted raids in multiple locations, including Amritsar, Delhi, and Jaipur, as part of the investigation. The case is still ongoing, with more revelations expected as the investigation progresses.
