80 Booked in ₹2 Billion Fake Firms Scam in Ujjain, Madhya Pradesh
Ujjain (Madhya Pradesh) – The Economic Offenses Wing (EOW) has cracked down on a massive scam, booking 80 individuals and 39 fake companies involved in a multi-billion rupee fraud. The accused allegedly used these bogus firms to evade taxes amounting to approximately Rs 10 crore.
The investigation was initiated in 2019 when the Central Goods and Services Tax (CGST) received information regarding tax evasion by Agrawal Soya Extract Private Limited Company in Dhamania, Neemuch. While CGST was conducting its probe, Kapil Trading Company of Indore lodged a complaint with the EOW, accusing Agrawal Soya and 37 other fraudsters of embezzling crores of rupees.
During the investigation, it was discovered that Gopal Singhal and Deepak Singhal, operators of Agrawal Soya, along with 78 others, had set up 39 fraudulent companies to carry out the scam. Under the guise of trading in cake and oil, these fake companies orchestrated a fraud of Rs 2 billion.
The accused individuals not only fabricated the names of directors for these companies but also falsified records to deceive authorities. Interestingly, Kapil Trading Company, which had lodged the initial complaint, was also implicated in the scam. Further investigation revealed that Kapil himself was involved in the creation of the fake firms, leading to the exposure of his deceit.
The accused, including Agrawal Soya and all the companies and operators involved, have been charged under Sections 420, 467, 468, 471, and 120-B of the Indian Penal Code. Authorities are poised to make arrests in the coming days.
According to sources, the scam involved Neemuch-based Agrawal Soya Extract Private Limited collaborating with 39 fraudulent firms and their operators between 2017 and 2022. They fabricated invoices, bills, and receipts to fabricate fictitious purchases and sales of soybean DOC. The directors of these companies, Gopal Singhal, Shalini Singhal, Deepak Singhal, and Navneet Garg, facilitated the fraud by issuing fake bills on behalf of non-existent firms such as Narayan Freight Carrier and Adarsh Nagar, Indore.
The EOW’s successful bust of this elaborate scam serves as a reminder of the ongoing efforts to combat economic offenses. With tax evasion schemes thwarted, Madhya Pradesh is taking a firm stance against fraudulent activities that harm the economy and society at large.
While the investigation continues, the EOW is urging businesses and individuals to exercise caution and report any suspicious activities promptly.
