Latest news with #InputTaxCredit
Time of India
2 hours ago
- Business
- Time of India
Two Mumbai bizmen arrested for Rs 50cr GST evasion
Mumbai: The State Goods and Services Tax (SGST) department arrested two company directors in separate cases of alleged fraudulent Input Tax Credit (ITC) claims, involving a combined GST evasion of over Rs 50 crore. In the first case, Yashwant Kumar Tailor, director of Magic Gold Bullion Pvt Ltd, was arrested for allegedly availing Rs 30.51 crore in ITC on fake invoices from non-existent firms between June 2020 and June 2025, without the actual receipt of goods or services. Investigators said the company had no infrastructure or manpower to justify its declared turnover, and Tailor failed to appear before the authorities or produce supporting documents. In the second case, Om Jay Ramrakhiani, director of RFIC Trading Pvt Ltd, was held in connection with alleged GST evasion of over Rs 20.05 crore. Officials said the firm received Rs 3.73 crore in ineligible ITC from Bharat Metal Corporation, which in turn sourced from multiple bogus entities with cancelled GST registrations. A search found RFIC Trading's registered address to be a residential property with no business records. Authorities allege the transactions involved fake invoices and fraudulent ITC adjustments with no actual cash payments. You Can Also Check: Mumbai AQI | Weather in Mumbai | Bank Holidays in Mumbai | Public Holidays in Mumbai | Gold Rates Today in Mumbai | Silver Rates Today in Mumbai Both accused were remanded to judicial custody for further investigation. Stay updated with the latest local news from your city on Times of India (TOI). Check upcoming bank holidays , public holidays , and current gold rates and silver prices in your area.
The Hindu
5 days ago
- Business
- The Hindu
GST fraud: Accused used Aadhaar and PAN of employees for fraudulent activity
Officers of the Directorate General of GST Intelligence, Belagavi Zonal Unit, have unearthed a GST fraud of ₹16 crore. One person was arrested during a search and inspection carried out at three places in Ballari district of Karnataka. The investigation revealed a sophisticated network of bogus companies engaged in fraudulent Input Tax Credit (ITC) transactions. Invoices to avail and pass on fraudulent Input Tax Credit (ITC) amounting to ₹16 crore were uncovered. The accused had set up shell entities with no legitimate business operations, generating fake invoices and e-way bills. The data analysis of the transactions has given substantial grounds regarding the fraudulent nature of the activity carried out by the accused. The arrested individual floated shell companies, with no actual business activity, for availing and passing on the benefit of ITC. During the search proceeding at the Principal Place of Business, incriminating documents were found and seized. The accused used forged rental agreement, letterhead and other documents, to create the shell companies. He used the personal documents, like Aadhaar and PAN, of his employees to carry out the fraudulent activity. The accused was produced in court, which sent him to judicial custody.
NDTV
6 days ago
- Business
- NDTV
Probe Agency ED Raids 12 Places Over 730 Crore GST Fraud Case
New Delhi: The Enforcement Directorate (ED) conducted extensive search operations on Thursday at 12 locations spread across Jharkhand, West Bengal, and Maharashtra in connection with a case linked to fraudulent GST invoices. The action is being carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002. The case pertains to a large-scale financial fraud involving shell entities and unauthorised financial networks that were allegedly used to claim fake Input Tax Credit (ITC) and launder illicit proceeds. The accused, including mastermind Shiv Kumar Deora, allegedly generated fake invoices worth approximately Rs 5,000 crore, resulting in ineligible input tax credit claims of over Rs 730 crore. Deora, who is believed to be the mastermind of the syndicate, was arrested in May 2025 and subsequently chargesheeted last month for his central role in orchestrating the racket. According to the probe agency, new searches are based on fresh and credible evidence pointing to the involvement of several additional individuals and entities suspected of facilitating the movement and layering of the proceeds of crime. The objective of the operation was to unravel the broader money trail, identify key beneficiaries, and seize incriminating material. Officials stated that the use of fake invoices and shell companies has emerged as a common modus operandi in tax fraud cases, and this particular case underscores the need for tighter financial surveillance mechanisms. The agency has not disclosed details of seizures or arrests, if any, from today's action, but confirmed that further investigation is underway. More developments are expected as the search operations progress and financial linkages are established. This is part of the probe agency ED's continued crackdown on economic offenders misusing financial systems to siphon off public revenue.
Mint
6 days ago
- Mint
ED raids 12 locations in Jharkhand, West Bengal, Maharashtra in ₹750 crore ITC scam
The Enforcement Directorate (ED) on Thursday conducted raids at 12 locations across Jharkhand, West Bengal, and Maharashtra as part of an ongoing investigation into a ₹ 750 crore fake Input Tax Credit (ITC) scam, officials confirmed. The searches, carried out under the Prevention of Money Laundering Act (PMLA), 2002, began early in the morning. Officials revealed that the case centers on a network of shell companies and unauthorised financial channels used to generate and launder fraudulent ITC claims, ANI reported. The investigation originated from the arrest of Shiva Kumar Deora, alleged to be the mastermind of the syndicate. Deora was taken into custody in May 2025 and was charged with last month. Officials say his interrogation and seized evidence revealed the involvement of several other individuals and firms in laundering the proceeds of crime. As per the officials, the ongoing search operation is based on credible leads that helped the agency identify additional beneficiaries and financial conduits within the illicit network. The ongoing search operation is based on credible leads that helped the agency identify additional beneficiaries and financial conduits within the illicit network.
New Indian Express
6 days ago
- New Indian Express
ED raids 12 locations, including six in Jharkhand, in Rs 750 crore fake ITC scam
RANCHI: The Enforcement Directorate (ED) is conducting searches at 12 locations across Jharkhand, West Bengal, and Maharashtra in connection with an ongoing investigation under the Prevention of Money Laundering Act, 2002. The case pertains to a large-scale fake Input Tax Credit (ITC) fraud involving shell entities and unauthorised financial channels. According to sources, ED teams are conducting searches at six locations simultaneously, including a flat located on the fourth floor of Krishna Apartment in the PP compound. Necessary documents, digital records and possible evidence are being searched at all these places, they said. The investigation stems from the arrest of Shiva Kumar Deora, identified as the key mastermind behind the syndicate, who was charge-sheeted last month following his arrest in May 2025. The case pertains to generation of Rs 750 crore "fake" Input Tax Credit (ITC) involving shell entities and unauthorised financial channels in Jharkhand. The current searches are being undertaken based on "credible evidence" that indicates involvement of several individuals and firms in laundering "proceeds of crime.
