Pune DGGI Uncovers Rs.1,196 Crore GST Fraud; One Arrested in Multi-City Operation
Pune DGGI Uncovers ₹1,196 Crore GST Fraud; One Arrested in Multi-City Operation
Pune: The Directorate General of GST Intelligence (DGGI), Pune Zone, has exposed a massive Goods and Services Tax (GST) fraud amounting to ₹1,196 crore. The investigation, which spanned across Pune, Delhi, Noida, and Muzaffarnagar, revealed a sophisticated network of shell companies involved in fraudulent Input Tax Credit (ITC) transactions.
According to a statement released by the Press Information Bureau (PIB) on Wednesday, officials have arrested one individual so far. The accused is a director of a private company in Muzaffarnagar, allegedly orchestrating the elaborate scam.
The investigation found that the fraudulent network created fake invoices and e-way bills without any corresponding goods movement. These shell entities had no legitimate business operations and were used solely to generate bogus ITC claims. The absence of RFID movement for the e-way bills further confirmed the scam.
Officials discovered that the cartel maintained a database of identities, addresses, and contact details, which were systematically rotated to obtain new GST registrations and avoid detection. During the searches, authorities seized crucial documents, including invoices, financial records, and company seals, indicating centralized control of multiple fictitious firms.
So far, 20 shell companies with no genuine business activity have been identified. One bank account linked to the fraudulent activities has been frozen, and further investigations are ongoing.
The DGGI has urged businesses to stay vigilant and report any suspicious GST activities to curb such large-scale fraud
