In a significant crackdown on tax fraud, Pune’s Koregaon Park police have registered a case against eight individuals, including the alleged mastermind Asraf Ibrahim Kalawadiya (50) from Surat. The group is accused of establishing 246 fake companies across 13 states, facilitating a Goods and Services Tax (GST) evasion estimated between Rs5,000 crore and Rs8,000 crore, according to reports from The Times of India.
The alleged activities took place between September 2018 and March 2024. The investigation began after the GST department uncovered that a non-existent firm, Pathan Enterprises, evaded Rs20.25 crore in taxes.
Kalawadiya, currently in judicial custody at Yerawada Central Prison, was arrested on March 13, 2024, by the Directorate General of GST Intelligence (DGGI). His seven associates remain at large.
Rishi Prakash, a senior intelligence officer from the DGGI, noted that the contact details used to register Pathan Enterprises were also linked to multiple bogus firms, all of which failed to pay taxes ranging fromRs5,000 crore to Rs8,000 crore over the stated period.
The investigation revealed that the registered owner of Pathan Enterprises, Pathan Shabbir Khan Anwar Khan, an autorickshaw driver, was unaware of the fraudulent activities conducted under his name. Similarly, another individual, Jeet Kukadiya, claimed ignorance of a bank account linked to the scam.
Kalawadiya emerged as the ringleader after a thorough analysis of bank statements and call records. He was located at a hotel in Mira Bhayander, Mumbai, where investigators recovered multiple cellphones, laptops, SIM cards, cheque books, debit cards, and rubber stamps.
Admitting to the operation of numerous fake firms and bank accounts using forged documents, Kalawadiya misled authorities by claiming to operate a scrap material business. His scheme involved issuing fake invoices to 246 fictitious entities, allowing them to obtain input tax credits without actually paying GST. Notably, Kalawadiya had previously faced arrest by the DGGI in Surat in 2022.
The case has since been handed over to the Economic Offences Wing for further investigation.