Indore: The Central GST department has tasted success in arresting one more accused, Mehul Khiraiyya, of the Rs 1100 crore bogus transaction and Rs 150 crore bogus ITC (Input Tax Credit) mega scam case on Wednesday. He was arrested by the officials in Mumbai and was produced before the special court which sent him on remand till January 14.
The CGST department appealed to the court for remand on the grounds of taking the accused to Mumbai for seizing documents related to tax evasion and floating of fake firms. This is the second arrest in connection with indirect taxes (sales tax, commercial tax, VAT, central excise) in the state. Besides, it is also the second arrest since rollout of the GST regime as Jagdish Kanani was arrested a few days ago.
The department officials believe that a few more arrests will take place soon. Mehul was involved in using IDs of poor people to create shell companies and firms. They also used these firms for bogus transactions and subsequent bogus ITC claims. CGST Indore has already started recovery of Rs 1 crore from the mastermind, Jagdish Kanani, who was sent to jail following remand by the CGST department.