Multi-state tax syndicate fraud busted; mastermind arrested in Delhi

 NEW DELHI: In a drive against syndicates operating and managing fake firms, the Directorate General of GST Intelligence’s (DGGI) Jaipur Zonal Unit has busted a major racket based in the national capital.

In a release, the Ministry of Finance said the syndicate was operating 569 fake firms and, through them, creating a huge fraudulent Input Tax Credit of Rs 1,047 crore. According to the release, the mastermind Rishabh Jain, aged 30, a resident of Delhi,had hired 10 employees to operate these fake firms. The mastermind was arrested on Sunday and produced before the Economic Offence Court, Jaipur, and is remanded for judicial custody till July 7, 2023.

"After extensive reconnaissance and data analytics, the officials of DGGI, Jaipur, were able to trace this mastermind in Delhi and nab him," it added.

"The modus operandi indicates that the syndicate has a close nexus with various brokers to purchase firms, bank accounts, SIM Cards, manage their RTGS and cash transfers, and mediate between them and beneficiary firms. There are brokers and agents who specialise in registering firms on GSTN using IDs of poor, needy, and susceptible people and selling these registered firms to syndicates, who further issue fake invoices through them."

In 2022–23, 142 cases involving fake ITC of Rs 1,327 crore were booked, in which nine persons were arrested. So far in 2023–24, five fake ITC cases involving Rs 1,531 crore have been booked, with the arrest of five masterminds.

Last week, it succeeded in cracking two big syndicates. Two masterminds were arrested in Jaipur on June 19 for running a fake ITC syndicate of Rs 320 crore. (ANI)

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