DGGI busts ITC Racket: 2 arrested, Rs 863 crore fraud uncovered



Quick Summary
The Gurugram Zonal Unit of the Directorate General of GST Intelligence (DGGI) has dismantled a significant Input Tax Credit (ITC) fraud amounting to £863 crore. The racket involved 461 fake shell entities, and two key individuals have been apprehended. Investigations revealed the use of forged documents to create and operate these entities, with the fraudulent credit ultimately flowing into the metal and steel sector.

DGGI Gurugram officials bust ITC racket involving 461 shell entities with fraudulently claiming Rs 863 crore, 2 held

Recently, the Gurugram Zonal Unit of Directorate General of GST Intelligence have unearthed a major fraudulent Input tax Credit (ITC) racket involving 461 shell/fake entities, which had passed on fraudulent ITC of Rs. 863 crore. In this matter till date, two key operatives have been arrested.

DGGI Busts £863m ITC Fraud, 2 Arrested

This racket of passing on of fraudulent ITC through fake shell entities was detected, when based on intelligence a search was carried out at a secret office being operated for this purpose. Huge number of forged/ morphed/ fake soft copies of documents like rent agreements, electricity bills, aadhar card, driving license, PAN card, etc. were detected in the laptops resumed from this secret office, which were used to create and operate their fake entities. The forensic examination of the laptops, devices seized from this office led to the eventual detection of ITC fraud to the tune of Rs. 863 crore involving fake 461 entities and arrest of two key operatives. Initial investigations indicates that the fraudulent ITC credit has eventually travelled to the highly evasion prone metal/iron & steel sector.

FAQ :

The total value of the fraudulent Input Tax Credit (ITC) uncovered is Rs 863 crore.

A total of 461 shell or fake entities were involved in the racket.

Two key operatives have been arrested in connection with the fraud.

The racket was detected when DGGI officials conducted a search at a secret office based on intelligence, uncovering forged documents used to create fake entities.

Forged documents included rent agreements, electricity bills, Aadhaar cards, driving licenses, and PAN cards.

Initial investigations indicate the fraudulent ITC credit eventually travelled to the metal/iron & steel sector.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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