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Jamnagar CA booked in ₹560 cr fake billing case: Officials
The officials said that Jamnagar-based chartered accountant Alkesh Pedhadiya allegedly misused GST credentials of bonafide taxpayers under the pretext of providing GST compliance services
A Jamnagar-based chartered accountant was booked for his alleged involvement in running a bogus billing racket of ₹560 crore involving fraudulent Input Tax Credit (ITC) claims of ₹112 crore through 14 non-genuine taxpayer firms, the Gujarat State Goods and Services Tax (SGST) Department on Thursday said.
Acting on specific intelligence, the department carried out search operations on October 3 at 25 locations across the state, including a private office in Jamnagar, where CA Alkesh Pedhadiya is a partner, and his residence, according to a press release.
Twenty-seven teams drawn from GST offices across Gujarat conducted the searches under the provisions of the Gujarat Goods and Services Tax Act, 2017, the department said in its statement.
Documents, computers and digital records containing evidence of fake invoices and manipulated financial data were seized during the operations. The department said its preliminary analysis found multiple layers of financial transactions routed through various bank accounts, indicating complex fund diversion mechanisms.
According to the release, several firms under investigation have admitted to the irregularities and agreed to pay about ₹33 crore towards tax, interest and penalties.
The department has also blocked ineligible ITC worth ₹4.62 crore, frozen bank accounts with deposits exceeding ₹1 crore and provisionally attached movable and immovable assets valued at approximately ₹36 crore.
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The statement said that out of the 25 entities under investigation, 14 were found to be non-genuine taxpayers created for issuing fake invoices.
It added that Pedhadiya allegedly misused GST credentials of bonafide taxpayers under the pretext of providing GST compliance services.
The department said several of these taxpayers have expressed shock at the exploitation of their credentials and trust and indicated they are considering lodging first information reports (FIRs) for fraud and breach of trust.
Despite multiple summons, Pedhadiya has not appeared before investigating officers.
The SGST Department said a Look Out Circular has been issued to prevent him from leaving the country and efforts are being intensified to secure his appearance.
