Massive Rs 8,000 Crore Fake GST Firm Scam Uncovered By DGGI In Pune: Fake Company In Auto Driver’s Name Exposed
Massive Rs 8,000 Crore Fake GST Firm Scam Uncovered By DGGI In Pune: Fake Company In Auto Driver’s Name Exposed
In a significant breakthrough, the Directorate General Of GST Intelligence (DGGI) uncovered a major fake GST firm scam, valued between Rs 5,000 to Rs 8,000 crores, linked to a fictitious Pune-based company registered in the name of an unsuspecting auto rickshaw driver. The DGGI investigation led to the arrest of Ashrafbhai Ibrahimbhai Kalavadiya (50), the alleged mastermind from Surat, Gujarat, who is accused of opening 246 fake GST firms and conducting large-scale fraudulent activities.
The case was filed by DGGI officer Rushi Prakash (39) at Koregaon Park police station in Pune. Alongside Kalavadiya, suspects Nitin Barge, Faizal Mevalal, Nizamuddin Khan, Amit Singh, Rahul Bariyya, Kaushik Makwana, and Jitendra Gohel face charges under various sections of the Indian Penal Code and the Information Technology Act.
The investigation began in October 2023, when DGGI officials identified suspicious transactions from “Pathan Enterprises,” a fake firm listed at Girni Shewalwadi on Pune’s Solapur highway. Pathan Enterprises was falsely registered under the name of Bhavnagar resident Pathan Shabbir Khan Anwar Khan, who was later identified as an auto rickshaw driver with no knowledge of the company. Further investigation revealed multiple fake GST firms tied to the same mobile number and email, along with a Rajkot-based ICICI bank account under the name Jeet Kukadiya, a private security guard, who claimed to have opened the account on behalf of accused Kaushik Makwana and Jitendra Gohel.
Following these leads, DGGI teams conducted raids across Pune, Mumbai, Rajkot, and Bhavnagar, eventually arresting Kalavadiya at a hotel in Mira Bhayandar, Mumbai, on March 12, 2024. The DGGI seized 21 cell phones, two laptops, 11 SIM cards, multiple bank cards, cheque books, and rubber stamps linked to various companies from Kalavadiya, which he allegedly used to operate the fake GST firms. Investigators revealed Kalavadiya’s network was generating fake GST bills through these firms without engaging in any real transactions, leading to substantial tax evasion.
The probe revealed that Kalavadiya was involved in acquiring fake GST firms, bank accounts, and SIM cards to facilitate fraudulent transactions. Among his associates, Nitin Barge of Mumbai managed the fake accounts, while Mevalal handled cash transactions. Nizamuddin Khan provided SIM cards and bank accounts, and Amit Singh assisted in setting up fake firms. Rahul Bariyya reportedly sold fake GST firms and accounts to other parties.
Kalavadiya’s network of 246 fake GST firms, including Pathan Enterprises, is suspected of evading taxes on transactions worth Rs 5,000 to Rs 8,000 crores between September 2018 and March 2024. Deputy Commissioner of Police Smartana Patil confirmed the FIR registration following the DGGI complaint, with ongoing investigations into the extensive fake billing network. Sources disclosed that Kalavadiya had previous arrests related to similar scams in Gujarat.
