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Assets Worth Rs 5 Crore Seized in Rs 10,000 Crore GST Fraud Case

Last updated: 26 February 2024


In a significant development, the Noida police have executed a district court order to attach immovable assets belonging to two Delhi-based individuals accused of orchestrating a massive GST fraud amounting to nearly ₹10,000 crore. This action comes in the wake of an extensive investigation launched last year, following the dismantling of a criminal syndicate involved in the fraudulent scheme.

Uncovering the Fraud

On June 1 last year, Noida police uncovered a sophisticated gang allegedly involved in perpetrating a multi-crore GST fraud. The modus operandi of the gang involved the registration of thousands of bogus companies under stolen or fake identities. These entities were then utilized to generate e-way bills and illicitly obtain input tax credit (ITC) from the government, leading to substantial losses in tax revenue.

Assets Worth Rs 5 Crore Seized in Rs 10,000 Crore GST Fraud Case

Progress of the Investigation 

Since the initiation of the investigation, the police have made significant headway, arresting 29 suspects and exposing 2,660 bogus companies linked to the fraudulent activities. Following due legal process, the district court issued 21 attachment warrants under Section 83 of the Criminal Procedure Code against seven absconding suspects, prompting the seizure of their assets.

Legal Actions Taken 

Assistant Commissioner of Police-1, Rajneesh Verma, revealed that properties collectively valued at over ₹25 crore have been identified for attachment during legal proceedings. Notably, immovable assets belonging to two suspects, Arjit Goyal and Rohit Nagpal of Delhi's Rohini area, valued at ₹5 crore, were seized on Wednesday. The authorities are poised to take action against the remaining suspects in due course.

Origins of the Investigation

The investigation into the fraud was initiated following a complaint lodged by a Noida resident and editor of a media firm regarding identity fraud on his PAN card. Subsequently, an FIR was filed at the Sector 20 police station, invoking sections of the Indian Penal Code related to cheating, forgery, and criminal conspiracy.

Conclusion

The seizure of assets belonging to the alleged perpetrators of the ₹10,000 crore GST fraud underscores the commitment of law enforcement agencies to combat financial malpractice and uphold the integrity of the taxation system. As legal proceedings unfold, stakeholders remain vigilant, underscoring the imperative of stringent enforcement measures to deter similar fraudulent activities in the future.

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