Quick Summary
The Madhya Pradesh Economic Offences Wing (EOW) has unearthed a massive ₹34 crore input tax credit (ITC) scam involving fake firms and fraudulent registrations. The alleged kingpin, Vinod Kumar Sahay, was arrested from Ranchi, the capital of Jharkhand, and was presented before the Jabalpur district
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FAQ :
The total value of the GST scam busted in Madhya Pradesh is approximately ₹34 crore, with fake input tax credit (ITC) amounting to ₹33.80 crore.
The alleged kingpin is Vinod Kumar Sahay, who was arrested from Ranchi, Jharkhand.
The fraudsters lured unsuspecting individuals by promising loans and told them that GST registration was mandatory to process these loans, using this pretext to collect sensitive personal documents.
The four fake firms central to the scam were M/s Maa Narmada Traders, M/s Namami Traders, M/s Maa Rewa Traders, and M/s Abhijeet Traders.
Fake invoices were generated under these bogus entities, and the accused used them to pass on ITC benefits to other businesses, despite no actual movement of goods or services.
Yes, authorities suspect the operation may be part of a wider inter-state tax evasion network, and further arrests are expected.
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