LUDHIANA: Ludhiana based zonal unit of Directorate General of GST Intelligence (DGGI) has busted a Rs. 450 crore bogus billing nexus operating from Mandi Gobindgarh and Khanna.
On Saturday, a team of DGGI officials raided Mandi Gobindgarh based firm Shiva Traders and arrested the owner Jiwan from the business premises. The accused who belongs to Amloh was on radar of DGGI after department got incriminating evidence that he was running network of fake firms and indulged in running dozens of fake firms some of which were shown running in other states. Through this network he executed bogus billing of more than Rs. 450 crore involving Input tax credit of 77 crore approximately. After his arrest the accused has been sent to judicial remand after being produced in a court.
Meanwhile speaking to TOI on condition of anonymity, a senior official said, "DGGI Ludhiana has booked a case on February 13 against a person named Jiwan ( proprietor of Shiva Traders, Mandi Gobindgarh), resident of Amloh, district Fatehgarh Sahib. Case has been registered for issuing fake invoices for passing inadmissible Input tax credit without supply of goods by creating around 15 dummy firms. These firms were found to be shown operating from state of Haryana, Delhi and Punjab while the entire operations and bank accounts were actually being managed from Khanna and Mandi Gobindgarh by Jiwan. It was revealed that the accused by floating various dummy firms had issued invoices having value of more than 450 crore involving Input tax credit of Rs. 77 cr approximately without any actual supply of goods"
Official also added, "Recovery of evidences like pen drives containing invoices issued by dummy firms, mobile sets and other documents during search revealed the involvement of the accused in creating and managing these dummy firms. The accused indulged in issuing of fake invoices in order to pass inadmissible Input Tax Credit to various recipients to earn commission ranging from 1-3 percent. The accused has been placed under arrest and has been sent to judicial remand. Stern action against perpetrators of such frauds will be continued to be taken"