Indore: Central and state GST department arrested one of the masterminds of Rs 1,000 crore bogus transaction and Rs 25 crore bogus ITC (Input Tax Credit) mega scam case on Saturday. The accused was produced in special court that sent him into three-day remand of CGST department.
This is the first arrest in connection with indirect taxes (Sales tax, Commercial Tax, VAT, Central Excise) in the state. Besides, it is also the first arrest since the rollout of GST tax regime. Few more arrests are likely to be made shortly.
The unearthing of mega bogus transaction and ITC scam had led to nationwide raids at more than 32 locations on December 13, 2018.
The accused used IDs of the poor to create shell companies and firms. They used these firms for bogus transactions and subsequent bogus ITC claims The arrest: Officials said that they had summoned Jagdish Kanani to CGST department at Manik Bagh Palace on Friday. Following interrogation, he was arrested on the basis of evidence of his involvement.
Commissioner CGST Neerav Kumar Mallick said that the accused was arrested by CSGT preventive cell’s superintendents Rajesh Soni and Kamal Dabi under Section 132 of the GST Act. Kanani, a resident of Thane near Mumbai, is the proprietor of Gurukripa Firm based in Mumbai. He used forged documents to set up five shell companies, including Puja, Krishan, Shyam and 2 others. He is regarded as one of the masterminds of the scam.
The court: He was later produced in court of Special Magistrate for Economic Offence Nidhi Modita Pinto. CGST counsel Chandan Airen sought his remand to ascertain various aspects of the case. He claimed that the department had substantial evidence to prove Kanani’s involvement in the case.