Introduction In an ongoing battle against fraudulent practices, the Directorate General of GST Intelligence (DGGI), Jaipur Zonal Unit, has made a significant breakthrough. The unit successfully exposed a massive Delhi-based crime syndicate, implicating it in a wide-ranging scam involving hundreds of fake firms and fraudulent ITC claims.
DGGI Jaipur’s Major Crackdown on Fraudulent Syndicate
Delving into the world of illicit enterprises, DGGI Jaipur targeted a vast crime network operating 569 counterfeit firms. The operation was set up to create and manipulate fraudulent ITC to the tune of Rs 1,047 crore. The linchpin of the operation, Shri Rishabh Jain, was found to have employed ten individuals to manage the faux firms.
The Modus Operandi of the Crime Syndicate
The syndicate’s fraudulent activities were intricately planned. Collaborating closely with various brokers, the group purchased firms, bank accounts, and SIM cards to facilitate their RTGS/cash transfers. Brokers specialized in registering companies on GSTN using the IDs of vulnerable individuals, who then sold these registered firms to the syndicate. The syndicate issued false invoices, resulting in taxable turnovers amounting to Rs. 6,022 crore and leading to the illegal ITC claim of Rs. 1,047 crore.
Scope of the Fraudulent Operations
The fraudulent scheme spanned across 14 states, with the majority of the faux firms operating from Delhi. The syndicate’s vast network included Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam, and Uttarakhand. The subsequent investigation resulted in the attachment of 73 bank accounts linked to the syndicate and its brokers.
Legal Consequences for the Mastermind
The mastermind behind the entire operation, Shri Rishabh Jain, was arrested and presented before the Economic Offence Court in Jaipur. His judicial custody extends until 07.07.2023.
DGGI Jaipur’s Continued Vigilance against GST Fraud
DGGI Jaipur continues to make significant strides in its mission to curb GST fraud. The unit’s proactive approach has led to the booking of numerous cases involving fraudulent ITC claims, with several key arrests. The committed team is dedicated to discovering and dismantling such syndicates threatening the integrity of GST administration.
Conclusion
The recent bust underlines DGGI Jaipur’s unwavering commitment to combatting GST fraud. It serves as a stern warning to those attempting to undermine the system through fraudulent activities. With continuous surveillance and stringent actions, the unit aims to maintain transparency and safeguard government revenue.
