Punjab finance, planning, excise and taxation minister Harpal Singh Cheema on Monday informed that the state taxation department had registered two FIRs against seven individuals for their alleged involvement in a massive bogus billing scam, involving fraudulent transactions worth Rs 385 crore and resulting in a tax evasion of Rs 69.57 crore.
Cheema revealed that the first FIR, filed on Sept 12, targets M/s Rajdhani Iron Products Pvt Ltd and its directors Manish Garg and Rythem Garg. He said the investigation uncovered a complex network of linked bogus firms, including M/s Mahalakshmi Traders and M/s Shiv Shakti Enterprises, which were all engaged in large-scale fraudulent activities and wrongful availing of Input Tax Credit (ITC).
“A physical verification of the declared business locations revealed that they were either closed or nonexistent, confirming the fraudulent nature of their operations. The firm is accused of fraudulent transactions amounting to Rs 310 crore, resulting in a tax evasion of Rs 55.93 crore,” Cheema said, adding that the FIR in the case was lodged with the senior superintendent of police, Fatehgarh Sahib.
In a separate action, another FIR was registered on Sept 9, against M/s K K Industries and its associates Chandan Singh, Amandeep Singh, and Mukesh, for their role in another major bogus billing scam, said Cheema.
The investigation revealed that M/s K K Industries was issuing fake invoices without the actual movement of goods, thereby facilitating the wrongful passing and availing of ITC to beneficiary firms, he said.
“Investigators cross-verified GST returns, e-way bill data, and conducted a physical verification of the premises, which exposed the fraudulent nature of the transactions. The firm is linked to fraudulent transactions worth Rs 75 crore, leading to a tax evasion of Rs 13.64 crore,” the minister added.
Furthermore, FIR No. 182 was registered on Sept 14 at Bathinda against Deepak Singla and Vivek Singla, both identified as passers of iron and steel goods in the Bathinda region.
Investigations revealed that the accused were involved in the passing of unaccounted goods without proper billing, thereby facilitating large-scale evasion of tax and causing loss to the state exchequer, he said.
In addition to these FIRs, the taxation department has intensified its field-level enforcement. In a special three-day checking operation at Mandi Gobindgarh, the State Investigation and Preventive Units detained 108 vehicles for verification. Twenty-six of these vehicles have already been penalised with a cumulative fine of Rs 50 lakh, with proceedings for the remaining vehicles still underway. This targeted drive focused on high-risk sectors like iron and steel, cement, and auto parts, sending a clear message that tax evasion will not be tolerated, said Cheema.
Reiterating the Punjab govt’s commitment to eradicating the menace of bogus billing and tax evasion, the minister said the FIRs registered against fraudulent firms and the large-scale checking drives demonstrated the seriousness of the state in protecting its revenue base.
Cheema emphasised Punjab’s ‘zero-tolerance’ approach, which combined technology-driven monitoring with physical enforcement. He said such deterrent actions would continue with even greater intensity to ensure genuine business practices were encouraged, honest taxpayers were safeguarded, and public revenues were fully protected for the welfare of the people of Punjab.
Source #TOI
