Ahmedabad police probe GST fraud case; five arrested

The Crime Branch, along with Gujarat’s Economic Offences Wing, searched 14 locations across the State, including in Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar

The Ahmedabad Crime Branch on Monday registered a first information report against several persons and entities after getting a complaint from the Central GST authorities over an alleged scam of floating bogus companies with an intent to defraud the government by availing bogus input tax credit through fraudulent transactions. 

After the registration of the FIR, the Crime Branch, along with Gujarat’s Economic Offences Wing, searched 14 locations across the State, including in Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar, it said in a statement.

Five people were arrested, including The Hindu’s Gujarat correspondent Mahesh Langa.

Mr. Langa’s name is not mentioned in the FIR. A company where his family member is a partner has been named in the complaint. 

Over 20 people are being questioned in the case, a police officer said.  The arrested persons will be produced in a court on Wednesday, when the police are expected to press for custodial interrogation. 

“It appears that there is an involvement of over 200 fraudulently created firms working across the country in an organised manner to defraud the government exchequer by availing bogus input tax credit. Forged documents and identities were used for the creation of such firms for tax evasion,” the Crime Branch said.

The police said there was a “large group” working towards a conspiracy of causing financial loss to the tune of crores of rupees to the country by way of using forged bills and documents. 

Published - October 08, 2024 10:12 pm IST