Delhi man held on charge of forging Rs 392-cr input tax credit

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SME Times News Bureau | 30 Oct, 2020
A Delhi resident was arrested by a team of Directorate General of GST Intelligence's (DGGI) Gurugram Zonal Unit on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit totalling over Rs 392 crore through issuance of invoices without actual receipts/supply of goods or services.

DGGI investigations revealed that accused Kabir Kumar created multiple proprietary companies on paper that were shown as based in Gurugram, New Delhi, Faridabad, Solan, Noida, Jhajjhar, and Sirsa etc.

Kabir had attempted to flee the city but was prevented from doing so at the IGI Airport by DGGI officials with support from the Customs and CISF officials, a Finance Ministry statement said.

During questioning, he admitted to the creation of 31 fictitious firms that had generated bogus invoices amounting to Rs 2,993.86 crore and input tax credit totalling Rs 392.37 crore, the statement added.

A laptop, mobile phones and 140 SIM cards were seized from his person.

Investigations at multiple locations in Delhi and based on documentary evidence and recorded statement, it was established that Kabir was the key person in orchestrating this racket of making fake firms on forged documents, the DGGI said.

Kabir, who was arrested on Thursday, was sent in judicial custody by a Duty Magistrate in Delhi.

Further investigations in the matter are in progress.