The Trombay police have registered a criminal case against a Lucknow-based Chartered Accountant for allegedly cheating a friend by illegally misusing a GST account opened in the latter's name , leading to a potential tax liability of Rs 4.69 crore .
The accused has been identified as Rashid Rais Siddiqui, while the complainant is Nasir Hussain Kadar Hussain Sheikh (36), an IT support executive working in Mumbai's Bandra-Kurla Complex (BKC).
GST Registration Taken for E-Commerce Venture
According to the FIR, Nasir, a resident of Cheeta Camp, Trombay, also runs a mobile phone shop named New India Enterprises, managed by his elder brother. In February 2018, Nasir planned to launch an e-commerce platform called Hipcart for online mobile sales, for which GST registration was mandatory.
Nasir had earlier been introduced to Siddiqui during a visit to Aminabad, Lucknow, in 2016 through a common acquaintance. Siddiqui claimed to be a chartered accountant, and the two later developed a friendship.
Siddiqui allegedly offered to handle the GST registration and, on March 5, 2018, collected Nasir's Aadhaar card, PAN card and electricity bill. On March 13, 2018, Siddiqui informed Nasir that the GST registration had been successfully completed and shared the GST certificate via WhatsApp.
GST Account Allegedly Misused Without Knowledge
However, the proposed online business never commenced and no sales were recorded. In June 2018, Siddiqui allegedly informed Nasir that GST returns needed to be filed. Nasir then decided to close the GST account and paid Rs 3,000 to Siddiqui for the closure, after being assured that an acknowledgement would be provided.
The acknowledgement was never shared and Siddiqui allegedly stopped responding to calls.
First GST Notice in 2020, Bigger Demand Later
In February 2020, Nasir received a notice from the GST office in Belapur, Navi Mumbai, claiming Rs 28 lakh in outstanding dues. Nasir immediately approached the authorities, stating in writing that no business activity had taken place and that the GST account had been closed.
Later, Nasir was informed that Siddiqui had allegedly opened GST accounts in the names of several individuals and carried out fraudulent transactions running into crores of rupees. The FIR notes that Siddiqui has been arrested in multiple similar cases.
Bank Accounts Examined, Salary Account Frozen
On June 15, 2023 , Nasir was summoned by GST authorities under Section 108 of the Customs Act . His bank accounts with Kotak Mahindra Bank and ICICI Bank were examined for the previous five years, but no suspicious transactions were found.
Despite this, in August 2024 , Nasir received another notice alleging fraudulent GST transactions during 2017–18 and 2018–19 , along with a demand and penalty totalling Rs 4.69 crore.
During a personal hearing in November 2024, Nasir reiterated that he had no involvement in the alleged transactions and sought action against Siddiqui.
Subsequently, Nasir discovered that his ICICI Bank salary account had been frozen, showing a negative balance of Rs 4.69 crore , prompting him to approach the police.
FIR Registered Under Bharatiya Nyaya Sanhita
Based on Nasir's complaint, the Trombay police registered a case under Section 318(4) of the Bharatiya Nyaya Sanhita (BNS) against Rashid Siddiqui and have initiated further investigation.
Police officials said further inquiry is underway to ascertain the extent of the alleged GST fraud and whether more victims are involved.
CAclubindia
