The Noida police have apprehended three additional members of a gang allegedly involved in a massive ₹10,000 crore Goods and Services Tax (GST) fraud, increasing the total number of arrests to 44. This arrest marks another significant step in the ongoing investigation that began in June 2023.
On June 1, 2023, the Noida police announced they had uncovered a sophisticated operation orchestrating a ₹10,000 crore GST fraud. The gang was involved in registering thousands of companies under stolen or fake identities. These fraudulent entities were used to generate fake invoices and claim illegitimate input tax credit (ITC), allowing the culprits to evade substantial amounts of tax.
Details of the Fraudulent Operation
Over the past two years, the suspects created at least 100 fake firms. These bogus companies were then sold to unscrupulous businessmen looking to evade taxes by claiming GST input tax credits. By using stolen identities and fake documents, the gang managed to fly under the radar for an extended period, significantly impacting the exchequer.
Recent Arrests
The latest arrests include Shubham Jindal (30), Tarunn Jindal (32), and Kaushik Jain (35). The Sector 20 police team detained these individuals from their residences on Saturday. Deputy Commissioner of Police (Crime) Shakti Avasthy reported that these names emerged during the investigation, and the suspects had been on the run since then. In January, a reward of ₹25,000 was announced for information leading to their capture.
Mechanism of the Fraud
The gang’s modus operandi involved registering numerous companies using stolen or fake identities. These companies were used to generate e-way bills and claim ITC fraudulently. E-way bills are required for the transport of goods worth over ₹50,000. The ITC mechanism allows businesses to reduce their tax liability by claiming credits for taxes paid on purchases.
Conclusion
This case highlights a significant crackdown on GST fraud by the Noida police. The arrest of these individuals underscores the ongoing efforts to dismantle complex tax evasion networks. With 44 members now in custody, the authorities continue to unravel the extensive web of deceit that facilitated this ₹10,000 crore fraud. The investigation remains active, with further developments anticipated as the police delve deeper into this elaborate scheme.