DGGI launches investigation into mass GST evasion involving 200 fake companies
- In Reports
- 04:59 PM, Oct 08, 2024
- Myind Staff
The Directorate General of Goods and Services Tax Intelligence (DGGI) has launched a major investigation into a large-scale GST fraud that involves over 200 fake companies operating throughout India. This investigation has led to several arrests, including that of a journalist.
Based on information from the DGGI, the Ahmedabad Crime Branch conducted simultaneous raids at 14 different locations, including cities like Ahmedabad, Surat, and Junagadh. During these raids, they detained more than 33 key individuals believed to be running 12 bogus companies designed to commit tax fraud.
Among those arrested is Mahesh Langa, a journalist and son of a prominent politician from Saurashtra. He is accused of using fake documents in connection with the fraudulent operations. Authorities are examining all relevant papers linked to Langa to determine the full extent of his involvement.
The investigation has highlighted several builders and operators connected to the scam, including businesses such as Arham Steel, Om Construction, and Raj Infra. These companies allegedly created fake invoices and documents to claim fraudulent Input Tax Credits (ITC) from the government, resulting in significant financial losses.
The Crime Branch stated that the fraud might cost the government crores of rupees. They reported that a network of over 200 firms was created using forged identities and documents to bypass GST regulations and avoid paying taxes.
In their statement, the authorities emphasised that this operation is part of a larger effort to combat tax evasion in the country. They are determined to hold those responsible accountable for their actions and recover the lost revenue.
As the investigation continues, more arrests are expected as officials work to unravel this extensive fraud scheme. The DGGI and the Crime Branch are collaborating closely to address the situation and ensure that similar activities do not occur in the future.
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