In a major crackdown on GST fraud, two individuals, Umang Darji and Ravi Soni, have been arrested for orchestrating a large-scale fraudulent operation involving fake rubber stamps and bogus GST input tax credits. The illicit transactions involved in this scam are estimated to be worth around Rs 1,000 crore. The arrests were made by CID crime and railway officials on Sunday.
Elaborate Scheme Unveiled
The sophisticated fraud scheme involved the misuse of GST numbers from various entities to generate fake invoices for a range of goods including gold, silver, software, and cement. This allowed the perpetrators to facilitate significant tax evasion while earning substantial commissions. The operation came to light following a raid at Darji’s office in Ahmedabad on Friday, which exposed the full extent of the fraudulent activities.
Fake Rubber Stamps and Bogus Tax Credits
During the raid, it was discovered that Darji was producing fake rubber stamps under the guise of running an accounting business. These counterfeit stamps were then used to obtain fraudulent GST input tax credits. The investigation further revealed that Darji had also misused bank accounts of registered political parties and trusts. Funds were deposited as donations and then transferred and withdrawn as falsified expenses, ultimately being funneled back to the donors through various channels.
Incriminating Evidence Seized
Authorities seized a large amount of incriminating evidence during the raid, including:
- Accounting books
- Receipts
- Chequebooks
- Passbooks
- ATM cards
- Tax audit reports
- Letterheads
- Tax invoices
- Income tax return forms
- Rental agreements
- Mobile SIM cards
- Rubber stamps of various companies
- Two laptops
- One pen drive
- Rs 80,000 in cash
Legal Actions and Ongoing Investigation
A case has been registered against Darji and Soni under various sections of the Indian Penal Code (IPC) and the Information Technology Act. The accused were presented in court and have been remanded in police custody until May 31. The investigation, which is being supported by the GST department, the Income Tax department, and the Election Commission, aims to uncover the full scope of the scheme and identify any involvement by political parties.
This major bust highlights the ongoing efforts of law enforcement agencies to combat GST fraud and ensure compliance with tax laws. Further updates on the investigation are expected as authorities continue to unravel the network behind this massive fraud.
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