Pune DGGI Detects ₹1,196 Crore GST Fraud

Ziya Khan 1 week ago

80 1 minute read

The Directorate General of GST Intelligence (DGGI), Pune Zone, has unearthed a massive GST fraud amounting to Rs 1,196 crore. According to a statement issued by the Press Information Bureau (PIB) on Wednesday evening, one individual has been arrested in connection with the case so far.The investigation involved extensive searches across Pune, Delhi, Noida, and Muzaffarnagar, revealing a sophisticated network of shell companies engaged in fraudulent Input Tax Credit (ITC) transactions.

The statement explained that the accused had set up bogus entities with no legitimate business operations, generating fake invoices and E-way bills to create an illusion of genuine trade. However, these E-way bills lacked RFID movements, confirming the absence of actual goods supply. The fraudulent network enabled the availing and passing of fake ITCs worth Rs 1,196 crore.The arrested individual, identified as a director of a private limited company in Muzaffarnagar, was a key player in the operation. Investigators discovered that the cartel maintained a detailed database of addresses, identities, email IDs, and phone numbers.

This information was strategically rotated to obtain new GST registrations, allowing the fraudsters to evade detection and sustain their illegal activities. Newly created firms had directors or proprietors selected from this repository, further facilitating the scam.Searches conducted at multiple locations led to the recovery of incriminating evidence, including original invoices, financial records, company stamps, and seals, indicating centralized control over the shell firms. So far, authorities have identified 20 fictitious companies with no genuine business activity.

Lastly, one bank account linked to a fraudulent entity has been frozen, and further investigations are underway.The DGGI’s swift action highlights the growing sophistication of tax fraud schemes and the need for robust preventive measures to protect the country’s financial system. Stay tuned to know more about it and others only with us and if you have anything to share do comment and share your thoughts.