Woman arrested for availing fake input tax credit of Rs 9.95 cr

A 49-year-old woman was arrested by CGST and central excise officials for allegedly availing an ineligible input tax credit of Rs 9.95 crore and causing a loss to the exchequer.

Nisha Rajesh Munjal, proprietor of Ekta Fashions and Dixa Fabrics and director of Ridgewood Industries and Pretty Woman Fashion, was arrested on Wednesday after the discovery of the fraud, said Sumit Kumar, commissioner for Bhiwandi Commissionerate.

These four firms availed ITC against fake invoices where no supplies have been physically received from the suppliers, and the quantum of the fake ITC is expected to go up further, Kumar said.

Munjal was produced before an additional chief metropolitan magistrate's court on Thursday, which remanded her to judicial custody for 14 days.

This is the second arrest by the commissionerate for a similar fraud in as many months, as per a statement.