In a major crackdown on GST fraud, the Central GST (CGST) arrested Pratik Patel, the owner of Modasa-based Metro Wire Industries, for allegedly claiming Rs 17.5 crore in fake input tax credit (ITC). Patel was produced before a court in Modasa and sent to judicial custody.
According to officials, the company had been under investigation for some time. The probe revealed that Patel allegedly floated multiple fake companies in the names of family members and close associates. These firms—reportedly including Royal Industries, Khush Industries, Royal Steel Industries and Bhagyoday Enterprises—issued bogus invoices without any actual movement or supply of goods. This allowed Patel to fraudulently claim ITC worth crores of rupees.
Investigators said around 10 to 15 such firms were identified so far. Officials warned that the total fraud amount could exceed Rs 20 crore. “The accused tried to manipulate the system by creating a web of fake companies and invoices,” said a senior CGST official.
Source from: https://www.ahmedabadmirror.com/cgst-arrests-modasa-bizman-for-claiming-rs-175cr-in-fake-itc/81907105.html
