DGGI Pune Zonal Unit Busts Rs 561.58 Crore Fake ITC Scam, Mastermind Arrested
By: Admin
October 10, 2024
Categories: GST Recent News
4 Min Read
The Directorate General of GST Intelligence (DGGI), Pune Zonal Unit, has uncovered a significant fake Input Tax Credit (ITC) scam amounting to Rs. 561.58 crore. This investigation led to the arrest of the mastermind, Mohammed Riyaz Uddin, based in Hyderabad, Telangana.
Acting on intelligence inputs, DGGI officials identified fraudulent transactions linked to M/s N.L. Traders, a Pune-based entity, which falsely claimed ITC of Rs. 2.27 crore from firms that were cancelled ab-initio. Further investigation revealed that M/s H.B. Trading Company, a Hyderabad-based firm, was non-existent at its declared address.
The probe, involving analysis of e-way bills and call records, traced fraudulent e-way bill filings for M/s H.B. Trading and 57 other fictitious firms to Riyaz Uddin. A raid at his residence on October 8, 2024, resulted in the seizure of around 2,600 fake invoices, rubber stamps of multiple companies, and a pendrive containing IDs and passwords of active firms. Laptops recovered at the site had tally software used to generate fake invoices and e-way bills for 58 entities.
The investigation revealed that Riyaz Uddin masterminded a network of fake invoices and e-way bills without any actual supply of goods or services. This allowed fraudulent ITC claims of Rs. 561.58 crore, causing a substantial loss to the government.
Riyaz Uddin has been arrested, and Rs. 3.94 lakh has been recovered so far. The DGGI Pune Zonal Unit is continuing its investigation to uncover the full scale of the fraud and other individuals or entities involved in the scam.
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