On the basis of specific information regarding the issuance of Fake Invoices and availment of fraudulent Input Tax Credit, simultaneous searches were conducted by the officers of DGGI, Nagpur Zonal Unit on February 5 and 6 at Nagpur.
These operations covered the business premises as well as residential premises of a number of Taxpayers involved in the Fake invoices racket. A large number of incriminating documents, including concealed digital data, were seized during the operations. Preliminary investigations have revealed that these Taxpayers had cumulatively received and issued Fake invoices valued at over Rs. 108 Crore and had availed fraudulent Input Tax Credit of Rs. 9.75 Crore.
On sustained interrogation of the authorized persons during the searches, the fact of receiving and issuing Fake invoices was accepted by the authorized persons as well as the fact that a number of Proprietorship firms had been set up which were used for receiving fake invoices and passing fraudulent Input Tax Credit Worth Crores of Rupees
Three Proprietors of these Firms have been arrested so far by DGGI Ramprasad Gambhiraji Borkar (Baba Enterprises), Mohd. Shamshad Sheikh (Bhawani Enterprises and Nehar Ghanshyam Bopche (Karan Steel).
Further investigations are underway to unearth the real masterminds and the other entities involved in the Fake invoices racket.