DGGI busts shell companies racket running invoicing scams, arrests two

They then issued fake invoices without supply of any goods or services, totally amounting to ₹141.30 crore, involving GST of ₹27.10 crore

MUMBAI: Mumbai zonal unit of the Directorate General of GST Intelligence (DGGI) has busted a racket involved in creating benami shell companies with an intention to undertake fraudulent transactions by arresting two brothers.

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According to DGGI officers, the arrested accused are identified as Jahir Abbas Patel, who is said to be the kingpin of the racket, and his brother, Akram Patel. Both of them were arrested on Thursday in Mumbai.

DGGI officials said that on conducting searches at multiple locations and examining statements and bank statements of various persons involved, it has been revealed that Jahir and Akram were actively involved in the formation of many shell companies. The brothers, officials said, formed these companies in the names of unsuspecting individuals by using their identity or KYC documents. They then issued fake invoices without supply of any goods or services, totally amounting to ₹141.30 crore, involving GST of ₹27.10 crore. Further investigation is in progress, they added.