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Slum dweller ‘owns’ firm involved in ₹5-cr scam
Investigation into a ₹5-crore Goods and Services Tax (GST) fraud took the Navi Mumbai crime branch to a slum in Koparkhairane at the doorstep of the export a fraudulent
Investigation into a ₹5-crore Goods and Services Tax (GST) fraud took the Navi Mumbai crime branch to a slum in Koparkhairane at the doorstep of the export a fraudulent company’s “owner”.
The Economic Offences Wing of the crime branch, which is at the helm of the probe into a garment export company called PK International, had booked one Prashant Kokane on the charges of cheating last week. While the firm was registered under Kokane’s name, the probe revealed that the main accused — who is yet to be identified — had approached Kokane in May 2018. Registered in Vashi, the firm was launched in July 2018 after it was listed on the GST website to generate a GST number. After the GST department found discrepancies in the business of the firm, they raised a flag that led them to find that the firm didn’t exist.
The accused had spent merely ₹2,000 to purchase the man’s documents to dupe the GST department. The firm claimed ₹5.04 between September 2018 and February 2019. “The accused asked Kokane for his documents including Aadhaar Card and PAN card to open a bank account. The man paid Kokane ₹2,000. While he remained completely unaware that a company was being set up in his name, Kokane did not think much because he got the money,” said a crime branch officer.
The accused also got a leave and license agreement of a shop in Vashi for a few months, which he registered as the official address of PK International.
“The firm has to get a certain receipt after the shipment is delivered to a foreign company. The government provides a discount over exports and also the firm earns GST returns. To get around this loophole, the accused delivered used cheap quality clothes and showed an inflated price on the receipt to reflect as they are brand new ones,” the officer added. The accused then availed the GST on the receipts. The crime branch has issued summons to seven persons who withdrew money from the bank account where the GST returns were transferred.
