ACB Files Chargesheet in ₹175 Crore GST Refund Scam

ACB Files Chargesheet in ₹175 Crore GST Refund Scam

Introduction to the Chargesheet

The Anti-Corruption Bureau (ACB) recently submitted a comprehensive chargesheet in the ₹175 crore GST refund scam. This crucial document uncovers significant lapses and fraudulent activities involving several individuals, including a state sales tax inspector.

Key Findings of the Scam

Rapid Refund Processing

Refunds were processed unusually quickly, within 5 to 15 days. This expedited procedure circumvented the mandatory 60-day verification period. Consequently, this oversight allowed the fraud to occur with ease.

Use of Fictitious Companies

The scam involved 16 companies that existed solely on paper. These companies used fake business addresses and forged documents to claim refunds. Therefore, they exploited the system and defrauded the tax authorities.

Individuals Implicated in the Scam

Amit Lalge

Amit Lalge, a state sales tax inspector, allegedly approved refunds without proper verification. His negligence directly enabled the scam to proceed unchecked.

Kiran Bhanusali

Kiran Bhanusali, a customs clearing agent, facilitated the fraudulent activities. His involvement was essential in executing the scam and bypassing regulations.

Farooq Shaikh and Farooq Contractor

Businessmen Farooq Shaikh and Farooq Contractor also participated in the fraudulent scheme. Their roles were crucial in the scam’s execution and overall operation.

Anil Runthala

Anil Runthala is named in the chargesheet as another individual involved in the fraudulent activities. His participation contributed to the scam’s success.

Details of the Fraudulent Activities

Timeline and Operations

The fraudulent activities occurred between August 2021 and March 2022 at the state GST department in Mazgaon. During this period, the implicated companies submitted 39 tax refund applications totaling ₹175 crores. Notably, many of these companies used fictitious addresses, with several sharing locations in Ghatkopar and Kurla.

Evidence of Fraud

  • Negligence by Amit Lalge: Lalge approved refunds without visiting the companies or verifying documents. This lack of due diligence significantly contributed to the success of the scam.
  • Forgery and Fake Documents: The companies employed forged tenancy agreements and other fake documents to claim refunds. This fraudulent documentation further highlights the scale of the scam.

Connections to Other Fraud Cases

Farooq Shaikh, identified as the mastermind behind this scam, was previously arrested by the CBI in a separate ₹200 crore cheating case. This connection reveals his involvement in multiple high-profile financial frauds.

Conclusion

In conclusion, the ACB’s chargesheet reveals a substantial GST refund scam involving various individuals and fraudulent practices. This case underscores the urgent need for stricter verification processes and greater accountability in managing tax refunds.

GSTScam #AntiCorruptionBureau #TaxFraud #ACBChargesheet #GSTRefund

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