Fake firms generate bills worth Rs.156 crore in GST fraud, 5 held in Nagpur crime branch’s overnight operation

The crime branch unearthed a massive Rs.156 crore fraud by a group of businessmen, including five arrested in a night-long operation that began on Saturday and lasted until dawn on Sunday.

The complain says around 60-70 fake companies were formed by the group, which conducted illegal hawala transactions and online gaming, apart from defrauding the GST department by claiming refunds by posing as bonafide businesses.

An offence was registered against Bunty Shahu, Jayes Shahu, Avinash Shahu, Rushi Lakhani, Anand Harde, Rajesh Shahu, Brijkishor Manihar, Anshul Mishra, and others at the Lakadganj police station, following a complaint lodged by Kolkata-based Biswajeet Roy.

The crime branch has already arrested Bunty, Jayesh, Harde, Lakhani, and Maniya, who were remanded to police custody until May 22 after being produced before the court on Sunday. The action was initiated by senior inspector Kamlakar Gaddime under DCP crime Rahul Maknikar and CP Ravinder Singal.

Apart from Roy, the group also duped one Mithun Rajpande. According to the complaint filed by Roy, the group misused his PAN card, Aadhaar card, and other documents to set up a private firm and misused the entity to pocket huge profits while keeping him unaware of the details of the transactions, most of which were fake.

Roy, speaking to the TIOL, said he was introduced to the alleged fraudsters in June 2024 through an acquaintance, Suraj Kedia, as he wanted some employment or help to start a small business.

“I am a school dropout. They took my Aadhaar card, PAN card, and made me sign numerous documents, stating they would ensure some monthly income for me. Initially, they paid me Rs.25,000 and helped me with accommodation at a godown,” said Roy, who faced financial losses after his father’s death in 2023.

According to the FIR, which is in the possession of the TOI, the complainant said the businessmen prepared fake invoices of various goods, which they sent to different firms, shops, suppliers, and distributors.

They would withdraw in cash the payments made into bank accounts, and use them for their benefit. Roy stated the businessmen used fake bills and invoices worth Rs.96.39 crore between September and December 2024 to pocket most of the account, duping the GST department with false declarations. Most of these transaction were in the name of the firm opened in Roy’s name.

Misusing the firm opened in the name of one Rajpande, the businessmen prepared fake bills and invoices worth Rs.59.51 crore between September and November 2024 and pocketed the bulk of the amount after duping the GST department, said the complaint.

Source: The Times of India