On the basis of specific Intelligence developed, inter alia, from online data analysis tools regarding availment of fraudulent Input Tax Credit and issuance of Fake Invoices, search operations were conducted by the officers of DGGI, Nagpur Zonal Unit, Aurangabad Regional Unit and Nashik Regional Unit over the last week on the premises of 22 Taxpayers located hundreds of kilometres across Maharashtra from Bhandara to Malegaon.
Each search operation resulted in the unravelling of a fresh layer of fake entities which were located in extremely remote locations and communally sensitive areas. At many places, the environment was very hostile and necessary assistance had to be taken from the local Police authorities.
The searches revealed that the entities were either non-existent or were residences of completely unconnected individuals. The rental agreements and electricity bills uploaded by these entities on the Common Portal as proof of business addresses were found to be forged. Inquiries with the Electricity Department revealed that the Electricity Meter connections mentioned on the Electricity Bills did not exist and inquiries with the Municipal Corporations revealed that the business addresses declared by these entities were not available on their records.
The goods involved in these fake transactions were Silk Yarn, Woollen Yarn, Cotton Yarn, Paper Yarn and Synthetic Filament Yarn etc. falling under HSN 5003, 5106, 5206, 5308 and 5402.
The summary of the operations conducted till date is as under:
(i). Number of fake entities unearthed = 22 Taxpayers
(ii). Value of fake transactions = Rs. 1083.20 Crore
(iii). Fraudulent ITC availed = Rs. 135.40 Crore
Intensive efforts were made to locate the Proprietor of the originating entity of this racket located at Malegaon (which had itself availed fraudulent ITC of Rs. 14.71 Crore) and the Proprietor was eventually apprehended on 17.10.2020 by the officers at Khandbara, a remote village in Nandurbar District of Maharashtra.
The Proprietor was arrested late evening on 17.10.2020 at Khandbara and was brought to Malegaon. He was presented before the Hon’ble JMFC (Sunday Holiday Court), Malegaon on 18.10.2020 and looking at the gravity of the Non Bailable offence, he been remanded to judicial custody till 31st October, 2020.