The Maharashtra GST and State Excise departments have arrested three businessmen involved in separate cases of fake Input Tax Credit (ITC) frauds collectively worth more than Rs 180 crore. The arrests were made following detailed investigations into bogus invoicing and fraudulent ITC claims that caused significant losses to government revenue.
In the first case, officials arrested Rachna Prabhat Kumar Maheshwari, director of Narwhal Chemicals and Fertilizers International Pvt. Ltd., for allegedly issuing fake invoices and availing wrongful ITC of Rs 56.57 crore. The fraudulent transactions allowed the company to claim tax benefits without any actual supply of goods.
In another major case, the State Tax Department arrested Vipul Maheshwari, director of Abhay Trading Pvt. Ltd., for his alleged involvement in a large-scale fake invoice racket valued at Rs 114.63 crore. Investigations revealed that the company fraudulently availed ITC of Rs 51.13 crore from Pluto Chemicals Limited, part of a wider network of firms engaged in generating bogus invoices. Authorities also found that Abhay Trading availed and passed on fake ITC worth Rs 56.63 crore between July 2017 and March 2023.
In the third incident, the Anti-Evasion wing of Central GST, Palghar, arrested Sanjay Sutar and Hitesh Babulal Patel, partners of Esspee Enterprises. The firm had allegedly availed ITC of Rs 9.78 crore using invoices generated by non-genuine suppliers.
Officials said these arrests highlight the state's ongoing crackdown on fake invoicing networks and fraudulent tax credit claims. The departments have intensified surveillance and data analytics to identify suspicious tax transactions and combat revenue leakage.
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