The Directorate General of GST Intelligence (DGGI) officers have busted a syndicate operating 569 fake firms that have been passing on fraudulent tax credit of Rs 1,047 crore, as per the finance ministry. The mastermind behind this syndicate was identified as 30-year-old Rishabh Jain, who hired ten employees for operating these fake firms. The Jaipur Zonal Unit of DGGI traced the mastermind in Delhi by conducting extensive recce and data analytics, leading to Jain’s arrest. This syndicate has been issuing invoices with taxable turnover of Rs 6,022 crore involving input tax credit (ITC) of Rs 1,047 crore through these fake firms to more than 2,000 beneficiary firms. The majority of the fake firms are located in Delhi, with a presence in 13 other states.
The ministry revealed that this syndicate has been operating in 14 states based out of Delhi. The majority of the fake firms are located in Delhi, with a presence in 13 other states, including Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam, and Uttarakhand. So far, the law enforcement officials have attached 73 bank accounts used by the syndicate and brokers.
Jain was arrested on June 25 and produced before Economic Offence Court, Jaipur, and is remanded for judicial custody till July 7, according to the ministry. The crackdown is the latest in a series of measures taken by the Indian authorities to clamp down on illegal activities, particularly related to fake firms and tax evasion.
