Bhubaneswar, July 24: In a major breakthrough, the Directorate General of GST Intelligence (DGGI), Bhubaneswar Zone has unearthed a significant case of tax evasion involving creation and operation of multiple fake firms.
DGGI has arrested the lady involved in fraudulent transactions related to Input Tax Credit (ITC) worth several crores of rupees. The total value of the fraudulent transactions is estimated to be over Rs 100 crore.
Acting on the lead during inspection of Cuttack based firm, GST officials conducted a search operation at the residential premise of the accused in Rourkela, Odisha. During the search, several incriminating materials- Fake seals of different firms, mobile phones and key documents related to fake firms were seized.
Preliminary findings indicated that 27 fake non-existent firms, without any business activity, were run by her using forged documents in the name of the dummy persons at various places in Odisha and outside. These firms were used solely for generating fake invoices and fake e-way bills, defrauding the exchequer of crores of rupees.
The suspect allegedly used these firms to create a network of bogus transactions across different locations.
Initial investigation suggests that transactions involving Rs 85 crore were routed through these fake firms in the last few years.
The prime suspect, has been apprehended and produced before the SDJM court, Rourkela on Wednesday. Further investigation is under progress.
