GST fraud of ₹175 cr. unearthed, mastermind nabbed at Bengaluru airport

Chennai, July 3, 2023 

A 34-year-old resident from Chepauk, the mastermind behind the scam, was nabbed at the Bengaluru airport during his attempt to flee the country

Directorate-General of GST Intelligence (DGGI), Chennai Zonal Unit, has busted a fake Input Tax Credit racket running into ₹175 crore involving 59 companies. The taxable value was ₹973.64 crore.

A 34-year-old resident from Chepauk, the mastermind behind the scam, was nabbed at the Bengaluru airport during his attempt to flee the country and subsequently arrested, according to a statement from DGGI, the apex intelligence and investigative agency for matters relating to violation of the GST.

His accomplice, a 35 year-old resident from Perambur, was arrested on June 22. The scam came to light when the fraudsters used advanced technology, including remote access software, foreign SIM cards, exclusive phones with contacts stored as aliases to carry out the billing activity, the statement said. PAN and Aadhaar credentials of persons from lower income were taken for the purpose of loans and fictitious companies were created in their names, it added.

DGGI officials seized corroborative evidence, including mobile phones, modem, laptop and SIM cards used in the scan and took steps to freeze 25 bank accounts and 20 GST registrations have been cancelled.

[The Hindu]