Ghaziabad-based dealer, Kaushik Shakthi Baburam was arrested on August 23 in case of GST fraud and has been remanded to judicial custody for 14 days, ie; till September 5, 2019.
The Enforcement officers of the Telangana Commercial Taxes department officials found out that the Kaushik, 35-year-old has floated 21 firms all over India, including the four in Telangana involved GST evasion of Rs. 20.08 crore.
However, none of these firms were found to be existent or operational. Out of the 21 firms, 12 were registered with the GSTN on his name, 3 in his wife’s name and 6 were registered in the name of his accomplice who is yet to be caught.
Investigators who were keeping a watch on Baburam’s activities for some time found out that he had registered his first company only in January 2019 and that he had registered his four companies in Telangana only since March 2019.
The activities were rounding in such a manner that Baburam has been operating from Delhi and sending goods to Telangana while trying to trick officials by creating a chain of firms in different states.
According to an official, huge loads of scrap metal is sent out from Telangana. Fake invoices worth Rs 150 crore is generated to avail input tax credit fraudulently.
Apart from this, various kinds of consumer goods from electrical goods, cupboard, stove were brought into the State without declaring sales.
Huge numbers of goods are brought into Telangana but no sales are shown. They are also not available in any godowns, which means he has given it all away to various parties under zero.
Investigators held that the case is seen to be peculiar because inward as well as outward tax fraud were detected.
Without paying IGST, when goods are sent from Hyderabad to Delhi, it is a huge loss to the State as our share of IGST is gone to the other state. Similarly, if goods are brought in without declaring them, there is a loss of CGST as well as SGST.
Officials have already initiated the process of alerting their counterparts regarding the fraud. The investigation and operation was carried out by Dr. R.Yedukondalu, Deputy Commissioner, Enforcement and his team under the supervision of M.S.Reddy, Special Commissioner, Enforcement, Telangana.
Further investigation is on to find out more and involvement of any mastermind behind the fraud.