Noida (Agency): The Noida Police have made significant progress in their investigation into an alleged Rs 15,000 crore GST scam, as they apprehended three more individuals, bringing the total number of arrests in the case to 15.
The recently apprehended suspects, Atul Gupta, Sumit Garg, and Manan Singhal, residents of Uttar Pradesh, were taken into custody on Friday. The police seized crucial evidence during the arrest, including fake invoices, GST registration certificates of six firms, two Aadhaar cards, three mobile phones, Rs 42,000 in cash, PAN cards, and two luxury cars.
This development comes after the Noida Police, earlier this month, exposed a well-organized gang involved in a massive GST fraud scheme, with a staggering sum of Rs 15,000 crore at stake. The operation, which had been ongoing for the past five years, involved the creation of around 2,600 bogus firms under stolen or fake identities. These companies were then used to generate e-way bills and obtain input tax credit (ITC) from the government.
The gravity of the situation prompted the involvement of other intelligence agencies by the central government, working in collaboration with the Noida Police, to track down all members of this syndicate.
Explaining the modus operandi, Raja Ram Gupta, from the special investigation branch (grade 2) of the UP-GST department, stated, “The company did not exist in any legal records. It only took invoices and passed them on to claim ITC without conducting any actual business.”
The scam exploited the input tax credit system, which allows businesses to claim credit for the GST paid on purchases of goods and services used in the furtherance of their operations. The gang misused this system by creating fictitious transactions to fraudulently obtain credits, leading to substantial losses for the government.
The gang also employed an elaborate strategy involving the manipulation of bank accounts belonging to disadvantaged individuals residing in slum areas. Funds were transferred under the guise of government schemes, while the victims’ Aadhaar and PAN cards were taken as collateral. The gang then used these stolen identities to register fake companies, completing the intricate web of deception.
As the investigation continues, the Noida Police remains committed to uncovering the full extent of this massive GST scam and bringing all involved individuals to justice. The collaborative efforts between law enforcement agencies and intelligence units demonstrate the determination to safeguard the integrity of the taxation system and protect the interests of the nation.
