Ludhiana businessman arrested in Rs 9 crore GST fraud

A Ludhiana-based businessman has been arrested for his alleged involvement in a GST fraud worth Rs 9 crore, officials said on Thursday. Cheema said the government dismissed the excise and taxation inspector with immediate effect under the Punjab Civil Services Punishment and Appeal Rules, 1970, following due process in connection with the officials prolonged unauthorised absence from duty.

A Ludhiana-based businessman has been arrested for his alleged involvement in a GST fraud worth Rs 9 crore, officials said on Thursday. The arrest of accused businessman, identified as Rohit Gupta, followed an operation by the State Intelligence and Preventive Unit, Ludhiana. The crackdown targeted a fraudulent network involving a firm, MAA STEEL, which allegedly issued fake invoices for HR/CR coils and strips without any actual supply of goods, Punjab Finance Minister Harpal Singh Cheema said in a statement. This network passed on input tax credit exceeding Rs 9 crore to various beneficiaries, causing a direct and substantial loss to the state exchequer, the minister said. During the search, the taxation department teams also discovered discrepancies between the physical stock available on the premises and the firm's official book records. Cheema said the scope of investigation has been widened to include several manufacturers of cycle parts and spare parts who are suspected of being part of this scam. ''These entities are under the scanner for improperly claiming export refunds or benefits through an inverted duty structure,'' he said. In a separate action, an excise and taxation inspector has been dismissed from service for a ''prolonged unauthorised absence''. Cheema said the government dismissed the excise and taxation inspector with immediate effect under the Punjab Civil Services (Punishment and Appeal) Rules, 1970, following due process in connection with the official's prolonged unauthorised absence from duty. ''The Bhagwant Mann government remains resolute that no form of indiscipline will be tolerated under any circumstances. We have already terminated four employees for similar misconduct and disciplinary proceedings are currently underway against another inspector and a clerk for comparable acts,'' Cheema added.

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