Credit fraud

DGGI arrests 5 including CA for fraud against input tax credit of Rs 146 crore

Jaipur: The Jaipur branch of the GST Intelligence Directorate (DGGI) arrested five people, including a Chartered Accountant (CA) for preparing false invoices amounting to Rs 1,004 crore and claiming a tax credit on inputs of Rs 146 crore. The defendants used 25 business records to show the transport of goods to Rajasthan, Madhya Pradesh and Telangana to claim an input tax credit.

Rajendra Kumar, ADG DGGI, reportedly said the main accused was 45-year-old Vishnu Garg. An investigation has been launched against its five companies, including Vikas Trading Company, Shri Shyam Traders, Vinayak Associates and SP Enterprises. These five companies are based in Jaipur, while nearly 20 other false delivery companies have been prepared by the defendants. The other four have been identified as CA Bhagawan Sahay Gupta, Mahendra Saini, Badrilal Saini and Pradeep Dayani. Pradeep is a resident of Hyderabad.

The fake challans on behalf of more than 200 companies showing transactions to the tune of Rs 1,004.34 crore have been prepared, an official said adding that the defendants used these challans to claim an input tax credit of Rs 146 crore . The invoices were for the transport of wood, scrap metal, plywood and gold.

First published: 24 January 2021


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