GST Fraud Network Busted: Two Arrested, Mastermind Still at Large

Police have arrested two men for allegedly creating fake GST-registered firms and fraudulently claiming Rs 11.79 crore Input Tax Credit using fabricated documents. The operation spread across multiple states involved manipulation of government portals. The alleged mastermind remains on the run.

Police in India have apprehended two men suspected of being part of a sophisticated inter-state network that established 10 fictitious GST-registered firms to illegally claim Rs 11.79 crore worth of Input Tax Credit (ITC).

The Cyberabad Police revealed that these fake businesses were created using forged documents and manipulated government portals for large-scale fraud, causing significant financial damage to the government. Arrests include a financial handler from Gujarat and a local accomplice, while the alleged mastermind from Delhi remains at large.

The accused utilized fake identification documents such as Aadhaar and PAN cards, acquiring SIM cards to register the falsified firms on the GST portal. Bogus transactions amounting to Rs 53.73 crores were fabricated, showcasing a complex fraud involving fake E-Waybills with altered vehicle credentials.

(With inputs from agencies.)