Two persons were arrested on Friday by Directorate General (DG) of GST Intelligence (HQs) in alleged cases of fraudulent IGST refund claim amounting to about Rs 44 crore.
The arrested persons have been identified as Ramesh Wadhera and Mukesh Kumar.
As per the statement made by Directorate General of GST Intelligence (DGGI), the action was taken on receipt of an input from Allahabad Bank, Paschim Vihar, New Delhi.
The bank noted suspicious transactions in accounts of four proprietorship firms (Monal Enterprises and others) wherein large quantum of IGST refunds had been received by them immediately after their opening, without any prior business transaction history.
Further, the refunds credited to these bank accounts were withdrawn and transferred in quick succession.
After this credit transaction, DGGI (HQs) verified that the addresses of these firms were either non-existent or the firms were not operating at the given addresses.
Also, the firms were in the names of benami individuals whose identification documents had been fraudulently obtained for the opening of these bank accounts and to obtain GST registrations.
It was found that 10 more similar fake firms are being operated by these two individuals.
The investigations further disclosed that the four firms had not made any purchases against the exports claimed to have been made by them, nor had any export proceeds been realised. E-way bill data also revealed that corresponding movement of goods did not exist.
Hence, it was proved that the said 4 firms had indulged in fraudulent availment of IGST refunds on the basis of fake invoices.
Searches were conducted at several premises.
Ramesh Wadhera is learnt to have several old cases of (Directorate of Revenue Intelligence) DRI/Customs against him.
Both Wadhera and Kumar have been arrested as per the provisions of section 67 of the CGST Act for their active role in defrauding the exchanger by claiming fraudulent IGST refunds.