Central GST Delhi North Commissionerate has busted a racket of issuance of fake invoices without actual supply of goods and services.
Two individuals – Asrar Akhtar and Vikas Singh, and their associates were found to be operating 19 fake firms created to facilitate fraudulent Input Tax Credit (ITC), thus defrauding the Exchequer.
Fraudulent ITC of around ₹25 crore has been detected to have been passed on using invoices involving an amount of ₹137 crore.
The individuals and their associates Sabban Ahmed and Arif, involved issuance of fake invoices of firms registered across Delhi NCR from a premise in Azadpur, Delhi.
While the investigations are underway, the CGST authorities have recovered voluminous incriminating documents, fake invoices, diaries, letter-heads, rubber stamps of fake firms, cheque books, transporter’s consignment notes as well as electronic devices. Investigations are underway to identify other individuals and firms involved in this racket, the release added.
The accused have committed offences under the provisions of Section 132(1)(b) of the CGST Act 2017, which are cognizable and non-bailable under Section 132(5) and punishable under Section 132(1)(i) of the said Act.
Hence, Asrar Akhtar and Vikas Singh were arrested on August 1 and have been remanded to judicial custody for 14 days by the Chief Metropolitan Magistrate (CMM), New Delhi at Patiala House Courts.