Credit fraud

DGGI arrests director of solar energy company in input tax credit fraud case

Jul 23, 2021 6:43 PM STI

By Shailesh Yadav
New Delhi [India], July 23 (ANI): The Delhi Zonal Unit of the GST Intelligence Directorate (DGGI) arrested the Director and Chief Financial Officer (CFO) of Urja Global Limited, a company listed on ESB and NSE, for allegedly fraudulently using input tax credit (ITC) of Rs 72 crore, sources told ANI.
Krishan Kumar Bansal, director of Microlyte and CFO of Urja Global Limited, Yogesh Goyal, director of Urja Global Limited and Amit Dua, director of NYX India were arrested on Friday for “knowingly committing offenses” under various sections of the CGST 2017 law.
They were arrested and placed in judicial detention for 14 days by a local Delhi court.
Sources told ANI that searches were conducted in Delhi and Chennai on July 20.
During the investigation it turned out to be an “ineligible” input tax credit (ITC) transfer case of Rs 72 crore through invoices for goods and unserviced services of approximately Rs 350 crore.
Sources said the modus operandi involved mixing ICT on goods and services and finally decoupling and shifting “non-qualifying ICTs separately to the provision of goods and services”.

“These ineligible service ITCs were accumulated and ultimately consumed on the composite supply of scripts to various importers located across the country,” a source said.
The investigation revealed that Jetibai Gransons Services Pvt Ltd received solar panels, inverters and batteries from Microlyte Energy (P) Ltd (MEPL) worth Rs 232 crore involving an ITC of Rs 55 crore.
Urja Global Ltd, in turn, showed online purchases of Rs 83.46 crore involving ITC of Rs 18.5 crore, either from vendors who have no inbound purchases or from canceled vendors. or non-existent.
Jetibai Gransons Services also provided goods to NYX Industry India (P) Ltd and services to RIBS India, Chennai of Rs 210 crore involving ITC of Rs 38 crore.
Sources said the majority of the original suppliers of goods and services and the final recipients of the goods turned out to be non-existent.
The directors of MEPL, NYX and UGL admitted their violation and accepted in their statements that there was no real supply of goods and services, and that the network of paper transactions was created only to increase their turnover and the use of credit on their outbound supply to Chennai, the sources said.
Total recovery to date is Rs 20.50 crore until RDC-03. (ANI)


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