Bengaluru: DGGI uncovers Rs 3,200 cr GST fraud, two held
Bengaluru, Jan 29 (PTI): The Directorate General of GST Intelligence (DGGI) in Bengaluru has uncovered a massive GST fraud amounting to Rs 3,200 crore and arrested two people in connection with the case.
A third suspect remains at large, Sucheta Sreejesh, Additional Director General of DGGI Bengaluru zone, said in a statement.
The DGGI’s Bengaluru zonal unit conducted searches at more than 30 locations across Bengaluru and Mumbai, uncovering a complex scam.
The accused created bogus companies with no legitimate business operations, engaged in circular trading to inflate turnover, listed these companies on stock exchanges, and facilitated the fraudulent availing and passing of fake Input Tax Credit totaling Rs 665 crore.
“The total value of fake invoices involved in the scam amounts to over Rs 3,200 crore,” she said.
The investigation uncovered 15 dubious companies with no actual business activity. These firms reported receiving FMCG goods worth hundreds of crores, but only issued invoices for services like IT support, management consultancy, and advertising.
Despite a large number of inward e-way bills, none of the companies had any outward e-way bills. Nine of these companies are even listed on Indian stock exchanges, according to officials.
“Investigation indicates that promoters of such dubious companies resorted to circular trading of fake invoices to inflate turnover, increase the share price, sell the shares subsequently and exit the company, duping common public of their money invested in shares of such companies,” the statement said.
The probe also revealed that GST returns for most of these companies were filed from common IP addresses, suggesting that they were all operated by the same accused.
Further searches at the companies' premises uncovered original documents such as invoices and financial records, stored across several locations, indicating that the same individuals were managing the affairs of multiple companies.
“Considering the magnitude of the fraud and its impact on the common public, the Directorate General of GST Intelligence, Bengaluru Zonal Unit has initiated thorough investigation in the matter,” Sreejesh said.
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PM Modi to address nation at around 8 PM tonight
New Delhi (PTI): Prime Minister Narendra Modi will address the nation at around 8 PM tonight, his first since the start of Operation Sindoor, officials said.
The address comes two days after India and Pakistan reached an understanding to stop all firings and military actions on land, air and sea with immediate effect.
The understanding was reached after four days of cross-border strikes that triggered fears of a wider conflict.
Operation Sindoor was launched by India on the intervening night of May 6 and 7 to avenge the killings of 26 people in the Pahalgam terror attack. Indian armed forces targeted nine terror sites in Pakistan and Pakistan-occupied Kashmir, killing over 100 terrorists.
Pakistan then attempted to attack several Indian military bases on May 8, 9 and 10.
The Indian armed forces launched a fierce counter-attack on several Pakistani military installations, including Rafiqui, Murid, Chaklala, Rahim Yar Khan, Sukkur and Chunian.
Radar sites at Pasrur and Sialkot aviation base were also targeted using precision munitions, causing massive damage
Director General of Military Operations (DGMO) Lt Gen Rajiv Ghai has said 35-40 Pakistani military personnel have been killed in the combat and New Delhi achieved its desired objectives.
Ghai is scheduled to speak with his Pakistani counterpart this evening, the second time since Saturday.
