Businessman Arrested in Rs 15,000 Crore GST Fraud

Apr12,2024 #GST #Tushar Gupta
GST Law Insider
GST Law Insider

Published on: April 12, 2024 at 16:19 IST

A businessman from Delhi was apprehended by the Noida police in connection to a colossal GST fraud amounting to Rs 15,000 crore. Tushar Gupta, aged 39, residing in Tilak Nagar, was taken into custody as the 33rd suspect in the ongoing investigation.

Gupta stands accused of orchestrating a complex scheme involving 35 fake companies, exploiting input tax credit (ITC) to the tune of Rs 24 crore over the past two years. His alleged involvement extends to a syndicate that operated through over 3,300 shell companies, utilizing counterfeit documents such as Aadhaar cards, PAN cards, rental agreements, and electricity bills.

DCP (crime) Shakti Avasthy disclosed that since the revelation of the fraud in June last year, law enforcement teams have been diligently unraveling the intricate network of culprits behind the scam. Gupta’s apprehension marks a significant milestone in this endeavor, with efforts focused on identifying the primary beneficiaries of the fraudulent nexus.

Earlier arrests in connection to the fraud include businessmen from Haryana, Ajay Sharma (28) and Sanjay Jindal (38) from Sonipat. Sanjay, owner of Brownie Metal and Alloys Pvt Ltd, allegedly utilized bills from 20 bogus firms to claim ITC worth Rs 17 crore, while Ajay, owner of Crystal Industries, claimed ITC exceeding Rs 8.5 crore through bills from 6 fake firms.

Gupta, described as being in the packaging business, hails from a family of chartered accountants and reportedly possessed an in-depth understanding of the system. He was questioned by GST officials in July last year before his recent arrest by the Noida police.

Gupta faces charges under various sections of the Indian Penal Code related to cheating and forgery, alongside 32 other accused individuals implicated in the fraud. The investigation has unveiled international transactions involving shell companies associated with the scam, spanning countries like Singapore, Vietnam, Taiwan, Thailand, and the Philippines.

With Gupta’s arrest, the investigation into the massive GST fraud takes a significant step forward, shedding light on the intricate web of deceit and manipulation that has caused substantial losses to the exchequer.

Related Post