In a major breakthrough, the directorate general of GST intelligence (DGGI), Bhubaneswar zone, has unearthed a massive fraud involving a number of shell companies and fraudulent input tax credit (ITC) transactions worth several crores of rupees.
A statement issued by the DGGI on Thursday said a businesswoman from Rourkela has been arrested in connection with the tax evasion involving creation and operation of 27 fake firms. The total value of the fraudulent transactions is estimated to be over Rs 100 crore.
Acting on the lead obtained during inspection of a Cuttack-based firm, GST officials conducted a search operation at the residential premise of the accused in Rourkela. During the search, several incriminating materials, including fake seals of different firms, mobile phones and documents related to benami firms were seized.
Sources said, the accused had allegedly opened a firm in the name of a lawyer in Cuttack. When the tax officials enquired about the firm, the lawyer stated his ignorance, which led the DGGI uncover the fraud.
Preliminary findings revealed that 27 fake non-existent firms, without any business activity, were run by the woman using forged documents in the name of the dummy persons at various places in Odisha and outside. The firms were used solely for generating fake invoices and e-way bills. The accused allegedly used these entities to create a network of bogus transactions across different locations.
“Initial probe suggested that transactions involving Rs 85 crore were routed through these fake firms in the last few years. The prime suspect has been arrested,” the statement said.
