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Pune zonal unit of DGGSTI arrest businessman for Rs 80 crore GST  fraud

According to the GST investigators, Soda was operating over 10 dummy companies which had issued fraudulent invoices worth ₹ 415 crore . No goods were supplied and all transactions were on paper, investigators said.

pune Updated: Oct 29, 2018 17:09 IST
Nadeem Inamdar
Nadeem Inamdar
Hindustan Times, Pune
Pune businessman,Rs 80 crore,GST fraud
DGGSTI, Pune arrested Sodha from Mumbai for evasion of GST worth Rs 80 crores as he was operating over dummy companies which had issued fraudulent invoices worth Rs 415 crores, officials said on Sunday. (HT representational photo )

The Pune zonal unit of directorate general of GST intelligence (DGGSTI) arrested Modisingh Padamsingh Sodha in Mumbai on Friday in connection with a GST fraud estimated to be close to ₹80 crore. DGGSTI, Pune arrested Sodha from Mumbai for evasion of GST worth Rs 80 crores as he was operating over dummy companies which had issued fraudulent invoices worth Rs 415 crores, officials said on Sunday.

Sodha was produced before the judicial magistrate first class (JMFC) which sent him to fourteen days judicial custody. According to the GST investigators, Soda was operating over 10 dummy companies which had issued fraudulent invoices worth ₹ 415 crore . No goods were supplied and all transactions were on paper, investigators said.

Rajlakshmi Kadam, deputy director, DGGSTI, Pune zonal unit said the accused has been carrying on the fraudulent activities since July last year and had been issuing bogus GST invoices. “ It is a pan-India fraud and investigation is on. We have asked all the zonal units of our department to take action in their respective zones based on the material evidence furnished by us,” said Kadam.

The investigation was carried out based on inputs that a select few had taken GST registration and were issuing bogus invoices for passing fraudulent input tax credit. The investigators went through large amount of data wherein key players of the racket were identified. Simultaneous raids were conducted in Mumbai and Pune. In the first round of searches, a GST fraud of ₹2.18 crores was recovered from the ‘dummy’ companies and in subsequent searches, further amount was traced and recovered.

The GST department has unearthed a fraud of ₹220 crore besides Soda case while the aggregate value of supplies according to the bogus invoices detected till date has been pegged at ₹ 900 crore. “ The country wide investigation shows the extent of bogus transactions which were initiated for inflating turnover of the companies which may been utilized to get enhanced credit limits from banks,” Kadam said. The entire operation was carried out under the supervision of Rajesh Pandey, additional director general and Vikram Wani, additional director.

Citizens can give information related to any evasion of GST or past evasion of central excise duty or service tax to the Pune Zonal unit located in CTS no 14, Plot No 16 A, Phoenix Building, Oppose Residency Club, Bund Garden Road. The citizens are entitled to cash reward as per the reward scheme of the government.

First Published: Oct 29, 2018 17:09 IST