Four Additional Arrests in Multi-Crore GST Fraud Case Unearthed in Noida

Last updated: 09 December 2023

Major Breakthrough: Four Arrested in Gautam Buddha Nagar's Ongoing GST Fraud Probe - 29 Now in Custody

In a significant development, the Gautam Buddha Nagar police have apprehended four more individuals in connection with an ongoing investigation into a GST fraud case. This brings the total number of arrests to 29, as authorities unravel a sophisticated scam involving a network of individuals operating fake firms to fraudulently claim Input Tax Credit (ITC) and GST refunds.

Arrests and Seizures

  • Gautam Buddha Nagar police arrested four individuals linked to a larger group involved in GST fraud.
  • Seized items include 54 SIM cards, 41 forged stamps, 18 forged Aadhaar cards, 16 forged PAN cards, and 20 bank chequebooks.
 

Scope of the Scam

  • The arrested individuals are part of an extended team associated with a larger group orchestrating the GST fraud.
  • A total of 29 people have been arrested to date, with ongoing raids in various districts to apprehend additional members.

Fraudulent Practices Unveiled

  • The gang utilized fake firms to generate e-way bills and claim Input Tax Credit (ITC) or GST refunds.
  • Police recovered data related to 250 bogus companies used in the fraudulent scheme.

Financial Implications

  • A staggering Rs 3 crore in eight bank accounts linked to the accused have been frozen.
  • The gang reportedly generated fake bills worth Rs. 70 lakh to 80 lakh daily, causing significant financial losses to the exchequer.

Key Accused and Absconding Leader

  • Nishant Agarwal, identified as the team leader, is currently absconding, with suspicions that he may have relocated to Mumbai.
  • Agarwal, a crucial figure in the scam, traveled abroad to facilitate the operations of the bogus companies.

Previous Success and Ongoing Investigation

  • In a previous case, the police froze ITC worth Rs. 4,000 crore claimed by bogus companies.
  • The ongoing probe has revealed the existence of 3,350 bogus companies, with financial transactions exceeding Rs 15,000 crore.

Legal Action and Rewards

  • An FIR has been registered under various IPC sections related to cheating, forgery, and criminal conspiracy.
  • The police have declared a reward of Rs 25,000 each on nine accused who are currently absconding.

Conclusion

The continuous unraveling of the GST fraud case in Gautam Buddha Nagar underscores the sophisticated nature of the scam, with a vast network of individuals involved in creating bogus companies. The arrests and seizures made by the police shed light on the magnitude of financial losses to the exchequer and the complexity of fraudulent activities in the GST system. Authorities remain committed to bringing all involved parties to justice as the investigation unfolds.



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