The Central Goods and Services Tax (CGST) Palghar Commissionerate has arrested Ritesh Padamchand Burad (51), a Chartered Accountant from Bhayandar, for allegedly availing and passing on fake Input Tax Credit (ITC) worth Rs 11.72 crore through M/s Flutron Build & Infra Pvt. Ltd. and a network of linked entities.
Searches and Evidence
Officials said searches were conducted on September 3, 2025, at Flutron's registered office and premises linked to Burad. According to the department, statements recorded under Section 70 of the CGST Act and documents seized revealed that ITC was fraudulently claimed on the basis of fake invoices, without any actual supply of goods or services.
Role of the CA
Investigators allege that Burad, who has been practising as a Chartered Accountant since 2004, controlled the invoicing and bank transactions of Flutron and associated firms. He allegedly coordinated with company directors and charged a 0.25% commission per transaction for facilitating bogus credit claims.
The probe has also linked him to dozens of paper companies that allegedly existed only to inflate turnover, boost group net worth, and obtain bank finance fraudulently.
Financial Trail
Case papers reportedly show that Flutron Build & Infra Pvt. Ltd. claimed Rs 11.72 crore ITC through GSTR-3B filings spanning FY 2020-21 to 2025-26. Authorities believe Burad was instrumental in creating and operating this fraudulent network.
Arrest and Custody
Burad was arrested and produced before a local court, which remanded him to judicial custody. The department sought custody citing the need to trace money trails and identify other participants in the alleged ITC fraud.
The case underscores the government's ongoing crackdown on fake GST invoice rackets, which remain a significant challenge to tax compliance and revenue protection.
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