Ghaziabad man held for making fake firms

A 31-year-old man was arrested for his alleged involvement in creating bogus firms using stolen or fake identities to use them to avail of input tax credit (ITC) as part of a Rs.10,000 crore Goods and Services Tax (GST) fraud, officers said on Thursday.

The suspect, identified as Babar Khan, was absconding for last nine months and carried a reward of Rs.25,000 on his arrest.

On June 1, 2023, Noida police busted a gang suspected of orchestrating a Rs.10,000 crore GST fraud. The gang’s operation involved registering thousands of shell firms to generate expressway (e-way) bills and obtain ITC from the government. During investigation, police found that over 2,000 bogus firms were created using fake Aadhaar cards, PAN cards, and were used to avail ITC.

According to Shakti Avasthy, deputy commissioner of police (crime), Khan was arrested from his residence in Loni, Ghaziabad on Thursday by the Sector 20 police team and crme response team of Noida police.

“During investigation, it was found that he was involved in arranging destitute people to use their Aadhaar cards. He would provide the identity documents of such people to the other members of the gang who further used them to create bogus firms, ultimately used to avail of ITC,” the DCP said.

Read more at: Hindustan Times