The Directorate General of GST Intelligence (DGGI) has uncovered a massive fake billing scam worth Rs79.4 crore within the insurance sector. The scam, which led to a Rs12.1 crore revenue loss for the government, has resulted in the arrest of three individuals who were allegedly masterminds behind the fraudulent activities.
The accused have been identified as Rajinder Singh, Manmohan Singh, and Rajinder Pal Singh. They were arrested on January 28 and have since been sent to judicial custody. According to officials, the trio orchestrated the entire fake billing racket, causing significant financial losses to the government.
The DGGI team launched a series of raids starting on January 9, when a 30-member team from Ludhiana and Amritsar raided 12 business and residential premises. During the operation, officials uncovered incriminating documents, revealing that multiple fraudulent firms were registered under ‘dummy’ individuals using fake documents to obtain GST registrations.
The investigation intensified with a second raid on January 20, where 40 officers searched 16 premises in Amritsar. This operation led to the cancellation of GST registrations for 22 fraudulent firms and the blocking of Rs97 lakh worth of fake credit that had been obtained through fake billing.
The accused used these fake firms to purchase fake bills from suppliers across several states, including Uttar Pradesh, Delhi, Odisha, West Bengal, Haryana, and Rajasthan. The firms acted as insurance salespersons, selling policies on behalf of brokers based in Gurugram and Delhi.
DGGI officials emphasized that they have been actively cracking down on fake billing operations across the state. In recent months, the department has detected fraudulent bills worth over Rs1,500 crore, resulting in the arrest of nine individuals in cities like Ludhiana, Mandi Gobindgarh, and Amritsar.
