Karnataka: Commercial Taxes Dept busts Rs 410 crore GST fraud network, arrests one
Bengaluru (PTI): The Commercial Taxes Department on Wednesday said it has arrested a man involved in generating and routing fraudulent ITC across multiple states and has unearthed a GST fraud worth Rs 410 crore.
In a statement, the Commercial Taxes Department said its Enforcement Wing (south zone) arrested Mohammed Tauqeer (42) when he attempted to abscond.
“Mohammed Tauqeer has been arrested for his active role in floating bogus firms and facilitating large-scale fake Input Tax Credit transactions. The accused was produced before the Special Court for Economic Offences here, which remanded him to judicial custody for 14 days,” the department said.
Further investigation has revealed that Mohammed Tauqeer and his accomplice, Shaik Jakeer Hussain, alias Basha, are the principal masterminds operating behind the network, it said.
It added that the duo had floated multiple bogus business entities and systematically issued fake tax invoices without actual supply of goods, thereby generating and passing fraudulent ITC to entities in Karnataka, Andhra Pradesh, and Tamil Nadu.
The investigation has revealed that the accused routed fake ITC to various entities, including previously arrested operatives, who in turn passed it on to works contractors and traders for offsetting their tax liabilities.
This mechanism enabled beneficiaries to discharge tax liabilities through ineligible ITC instead of cash payments, causing a significant loss to the government exchequer.
“The financial magnitude attributable to this network is Rs 410 crore in fraudulent transactions involving wrongful ITC of Rs 102.5 crore,” the department said.
The statement said the modus operandi adopted by the accused reflects a well-structured and evolving pattern, involving frequent creation and cancellation of GST registrations within short durations, continuous changes of mobile numbers and bank accounts, operation through multiple-layered entities, and functioning in isolated silos to evade detection.
The accused are originally from Chittoor in Andhra Pradesh, with Mohammed Tauqeer currently residing in Bengaluru and Basha operating from Andhra Pradesh.
“Despite sustained efforts over the past month, Shaik Jakeer Hussain managed to flee overseas and remains absconding,” the department said.
Efforts are underway to trace and secure him through appropriate legal channels, it added.
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UP: 11 killed in multi-vehicle crash in Mirzapur
Mirzapur (UP) (PTI): Eleven people were killed in a multi-vehicle accident on Wednesday in Dramandganj area here, police said.
SP Aparna Rajat Kaushik said that information about the accident was received at around 8.30 pm.
The collision occurred on a route descending from Dramandganj valley towards the Lasoda area, where a vehicle lost control and crashed.
Preliminary investigation suggests that a truck coming from behind possibly rammed into another truck after suffering a brake failure.
A car got trapped between the two trucks during the collision. In the sequence of events, another vehicle was also hit and caught fire, she said.
Police teams and fire brigade personnel rushed to the spot immediately upon receiving the information, according to Kaushik.
With the assistance of local residents, rescue and relief operations were launched without delay, she said.
"So far, 11 deaths have been reported, and efforts are underway to establish the identities of the victims," the SP said.
Police personnel remain deployed at the site, and efforts are ongoing to restore traffic movement on the affected route.
According to initial information, one of the trucks involved bears a Bihar registration number, while the other is registered in Madhya Pradesh.
Among the cars involved, one is from Sonbhadra district and another from Mirzapur district, the SP said.
A detailed probe is on in the matter.
