Quick Summary
Introduction In a stunning revelation, a complex GST fraud involving ₹54 crore has been uncovered by the Anti-Corruption Bureau (ACB) of the Delhi Government. The fraudulent scheme, masterminded by a rogue GST officer, a trio of lawyers, and other accomplices, manipulated the Goods and Services Tax (GST) system to claim undue refunds through fake companies and invoices. The Scheme The scandal, dubbed "The Special 7 and 500 Firms," involved the creation of 500 fictitious companies and bogus
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FAQ :
The total value of the GST fraud uncovered is £54 million (₹54 crore).
Approximately 500 fictitious companies were created to facilitate the scam.
A GST officer named Babita Sharma and three lawyers, Rajat, Mukesh, and Narendra Saini, have been arrested. Other accomplices, including fake firm owners and transporters, are also implicated.
The fraudsters generated fake invoices worth £718 million and claimed undue refunds by creating fictitious companies that ostensibly dealt in the import/export of medical goods.
The GST officer, Babita Sharma, approved over 400 refund claims worth £35.51 million rapidly, often within three days of application and without adequate verification of invoices or Input Tax Credit (ITC).
The refunds were channelled into various bank accounts owned by the lawyers, their families, and associates linked to the fake firms.
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