DGGI arrests one person for passing fake ITC of over Rs 190 cr

The GST intelligence arm has arrested one person on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit of over Rs 190 crore by issuing invoices.

The Gurugram unit of the Directorate General of GST Intelligence (DGGI) has arrested one Shamshad Saifi - resident of New Delhi - on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit (ITC) by way of issuance of invoices without any actual receipt or supply of goods or services, an official statement said.

"A total fake ITC of more than Rs 190 crore has been thus passed by the accused," it added.

As per the investigation, Md Saifi created two companies by the name of M/s Techno Electrical and M/s Lata Sales based in New Delhi on the basis of bogus and forged documents in the name of non-existent persons at addresses not even pertaining to firms.

M/s Techno passed on fraudulent ITC of Rs 98.09 crore to M/s Lata, which further generated fake ITC of Rs 69.59 crore to various non-existent firms.

Md Saifi is also responsible for creating four more fake non-existent firms, namely M/s Galaxy Enterprises, M/s Moon M/s Sidharth Enterprises and M/s Sun Enterprises based at New Delhi. It was ascertained that all the above-mentioned firms have only supplied invoices without the actual supply of goods, the statement said.

The investigation spanned multiple locations in Delhi and based on documentary evidence and statement recorded, it was ascertained that Md Saifi is a key person in orchestrating this racket of making fake firms on forged documents. Accordingly, he was arrested today, it added.