Man who ran 46 fake firms, helped businesses evade taxes worth ₹83 cr arrested

CGST Commissionerate said the investigation conducted so far revealed that 46 firms that were being controlled by Arvind Kumar and his associates are fictitious.

The Central Goods and Services Tax (CGST) officers, Delhi East, arrested one person for running a network of 46 fake firms and passing on fake input tax credit (ITC) worth ₹82.23 crore.

According to the official statement of CGST Commissionerate, the accused Arvind Kumar was arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate on January 17, who remanded him to judicial custody of 14 days till January 3.(REUTERS/Representative image)

According to the official statement of CGST Commissionerate, the accused Arvind Kumar was arrested under Section 69(1) of the CGST Act, 2017 and produced before the Duty Magistrate on January 17, who remanded him to judicial custody of 14 days till January 3.

"Through the use of extensive data analytics, officers identified and searched 21 premises, between January 15 to January 17, which led to the unraveling of a network of fake firms that were operating since 2017 to pass on fake ITC. The network of fake firms was being operated by one Arvind Kumar who used to pass fake ITC for a commission of 4 to 4.5 per cent of the invoice amount," it said.

CGST Commissionerate said the investigation conducted so far revealed that 46 firms that were being controlled by Arvind Kumar and his associates are fictitious.