The Directorate General of GST Intelligence (DGGI) has arrested two masterminds behind a massive fake billing GST fraud amounting to over Rs700 crores. The accused, identified as Manish and his brother Amit, residents of Gurmukh Singh Colony in Mandi Gobindgarh, were allegedly central to a scheme involving the creation of fictitious firms through identity fraud.
This elaborate scam generated fake invoices and input tax credit (ITC) claims, leading to over Rs100 crore in tax losses for the government. According to officials, the duo operated a complex network of dummy firms, passing on the fraudulently obtained ITC to intermediary companies. The defrauded funds were funneled into seven APMC accounts, from which the brothers withdrew cash exceeding Rs717 crores, primarily from a single bank branch.
During raids on their residential and official premises, the DGGI seized substantial evidence, including 11 mobile phones, seven pen drives, two laptops, 56 cheque books linked to multiple bank accounts, 27 identity documents, seven stamps, and 46 ATM cards belonging to various individuals.
The brothers reportedly confessed to their involvement in the fraud and were arrested on October 9. They have since been remanded to judicial custody as the investigation continues.
DGGI Ludhiana is now focusing on identifying additional dummy entities involved in similar fraudulent activities related to bogus billing and tax evasion. Authorities have intensified efforts to combat the rising issue of fake billing in the region, with further arrests expected in the near future.