Key accused behind ₹200-cr billing scam arrested: DGGI

According to allegations, Satveer Singh Sekhon was rinvolved in wrongful availment and utilisation of input tax credit worth ₹30.52 crore without any actual supply of goods.

The Directorate General of GST Intelligence (DGGI), Ludhiana, has arrested Satveer Singh Sekhon, the “mastermind” behind a massive billing fraud amounting to ₹200.05 crore. Sekhon was reportedly involved in wrongful availment and utilisation of input tax credit worth ₹30.52 crore without any actual supply of goods. The fraudulent transactions were carried out through firms he managed, including Batala Metal Industries, HS Steel Industries and Citizen Industries.

During search operations at Sekhon’s residential and official premises, authorities seized evidence, including a CPU, invoices, cheque books, passbooks of various accounts and diaries detailing the fraudulent activities, officials said.

According to DGGI officials, Batala Metal Industries, one of the firms involved, was engaged in trading and manufacturing of MS scrap, HR coils and ERW pipes. However, the company was being used as a front for fake billing operations. During search operations at Sekhon’s residential and official premises, authorities seized crucial evidence, including a CPU, invoices, cheque books, passbooks of various accounts and diaries detailing the fraudulent activities, officials said.

Investigations revealed that Sekhon was a partner in one of the firms, while the other two were registered in the names of his wife and driver. According to DGGI officials, as the mastermind of the operation, he orchestrated the fraudulent utilisation of input tax credit amounting to ₹30.52 crore through fake invoices totaling ₹200.05 crores, violating the provisions of the Central Goods and Services Tax (CGST) Act, 2017.

Officials added that upon being confronted with evidence, Sekhon admitted to the offences in a voluntary statement. Following this admission, he was arrested and has been remanded into judicial custody.

Further, officials added that DGGI’s Ludhiana unit is further identifying and focusing dummy entities that are involved in the fraudulent activity of bogus billing. The DGGI, Ludhiana, is unearthing the menace of fake billing and other GST-related fraud/evasion, officials added.