GST fraud of Rs 900 crore busted, 3 held

The kingpin and two of his accomplices were arrested and produced before a court which remanded them in judicial custody and further probe is on, the official said.

In one of the major operations, the sleuths of DGGI, Chennai Zonal Unit (CZU), carried out a search on December 19 and 20 at multiple premises in the State and unearthed the fraud of about Rs 900 crore.

A string of firms was created and GST registrations were done for them using identity documents of gullible people, Principal Additional Director General, CZU, DGGI, K Anpazhakan, said in an official release.

Fake invoices were issued and a fraudulent input tax credit of around Rs 152 crore was availed by various firms, he said.

The probe revealed that the mastermind and his two accomplices were involved in creating bogus firms and opening of bank accounts based on the PAN Cards and Aadhaar Cards obtained from gullible people who were falsely promised bank loans. Cash totalling Rs 24 lakh was also seized from the residential premises of the mastermind. “Also, the search at the premises of one of the accomplices resulted in the seizure of hundreds of PAN and Aadhaar Cards.”