2 Racketeers arrested in Rs 141 Cr fake GST invoice scam in Delhi, web of fraud companies found

New Delhi: The Ministry of Finance said in a Press release today that the Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana has arrested Deepak Mittal, resident of Mayur Vihar in New Delhi, and proprietor of M/s DK Enterprise, and Ankur Garg, resident of Hansi in Haryana, proprietor of M/s Garg Enterprises.

Both persons were found involved in fake invoices racket and fraudulently passed and availed Input Tax Credit amounting to approximately Rs 141 Crores through the assistance of a complex web of various entities.

During investigation it was found that Mittal, an authorised dealer of ITC, has issued sale invoices of cigarettes directly and indirectly (through Ankur Garg) to various dummy and non-existent trading firms, thereby causing loss to the exchequer by evasion of GST.

These dummy and non-existent trading firms further issued fake invoices to various export firms which have filed IGST refund claim on the basis of these fake invoices.

It was discovered that no export of cigarettes took place and the IGST refund claim filed by these export firms was bogus, and in many cases the claim was rejected by the jurisdictional Centre and State GST authorities.

Mittal and Garg have been charged with offences under the provisions of Section 132(1)(b) & (c) of the Central Goods & Services Tax Act (CGST), 2017, which are cognizable and non-bailable offences and punishable under Section 132 of the CGST Act, 2017.

Consequently, Mittal and Garg were arrested on 26 November under Section 69(1) of the CGST Act, 2017 and produced before the Judicial Magistrate in Gurugram Court on the same day. The court has remanded them to judicial custody till 10 December, 2019.

Further investigation in the matter is in progress.

On 25 November, one racketeer was arrested in a Rs 140 Cr fake GST invoice scam in Delhi and remanded to judicial custody for 14 days on 26 November by the Chief Metropolitan Magistrate, New Delhi at Patiala House Courts. 10 fraud companies found.

Earlier in November, the Central GST Delhi-West Commissionerate unearthed a racket of issuance of fake invoices without actual supply of goods and services by M/s Royal Sales India and 27 other dummy companies. 2 accused were arrested.

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The ID Staff

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