GST Fraud of Rs.10,000 Crore: 3000 Shell Cos Created on Fake Details

The investigation initiated by the government to probe the alleged GST fraud in Noida uncovered around 3,000 shell companies. These companies were created using fraudulent Aadhaar and PAN details, with the total value of the fraud estimated to be Rs 10,000 crore.

The Directorate General of GST Intelligence caught Sanjay Dhingra (Promoter of Good Health Industries Pvt Ltd). It is said that the company is involved in the production of 'Dairy Best' brand desi ghee, with manufacturing facilities in Mewat, Haryana, and Saharanpur, Uttar Pradesh. The arrest occurred on Thursday as part of an ongoing investigation conducted by the DGGI.

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During the interrogation by the DGGI, Sanjay Dhingra disclosed that the syndicate he was involved with had successfully registered around 3,000 companies. 

Out of these, approximately 1,000 companies were actively involved in unlawfully generating e-way bills and fraudulently claiming input tax credits amounting to hundreds of crores of rupees. The agency has identified tax evasion exceeding Rs 700 crore committed by these entities thus far.

The government has engaged multiple intelligence agencies to track down the members of the syndicate operating across several states. The syndicate has been involved in registering shell companies as part of their illicit activities. The collaborative efforts aim to identify and apprehend the individuals associated with these fraudulent operations.

The Ghaziabad unit of the DGGI is currently investigating Sanjay Dhingra's manufacturing units located in Mewat and Saharanpur. The investigation is focused on their suspected involvement in evading GST amounting to over Rs 63 crore. 

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It has been reported that Dhingra has previously faced arrest for similar GST fraud charges. Furthermore, he is currently under investigation by other central agencies for cases related to bank fraud.

The initial investigation has unveiled the operating method of the syndicate, which involves establishing shell entities using counterfeit documents. 

Additionally, they appoint dummy directors to protect the central orchestrator of fraudulent activities. This tactic is employed to conceal the identity and involvement of the mastermind behind the illicit operations.

Also, Read: "A Guide to Claiming HRA and Home Loan Deductions".
 

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