One held over GST fraud worth ₹118 crore

 








Mumbai Zonal Unit of Directorate General of GST Intelligence, CBIC, (DGGI1-MZU) on August 17 busted an Input Tax Credit (ITC) refund fraud case worth ₹118 crore and arrested Santosh Doshi, who allegedly operated seven companies.

The officials claimed that the arrested accused fraudulently availed ITC without any supply of goods and services showing bogus invoices and claimed ₹118 crore as refund against exports.


“The modus operandi involved in this financial fraud was that several dummy units were created in the States of Jharkhand and West Bengal on the basis of forged documents. They passed on the said bogus ITC to several shell trading firms acting as intermediary entities situated in the State of Chhattisgarh. Further, several units were created as exporting fronts at Pune and Mumbai in Maharashtra to whom the units in Chhattisgarh supplied fictitious goods purported to be exported,” the official said.

The export units were created merely for the purpose of availing refund in a fraudulent manner. “To nab the mastermind behind the whole channel of financial fraud, the DGGI – Mumbai launched an operation, by searching concerned CHAs (Custom House Agents), CAs (Chartered Accountants), CSs (Company Secretaries), key persons and freight forwarders and several statements were recorded. It was revealed that Santosh Doshi, a resident of Pune, Maharashtra, who is also the Managing Director of Masumi Overseas Pvt. Ltd., was actually the promoter and operator of these exporting firms. The accused created a complex web using multiple layers of transactions starting from manufacturers to traders in between and ultimately to exporters to facilitate encashment of accumulated ITC,” a statement from DGGI – Mumbai said.

According to officials, the seven companies involved are Amal Overseas Pvt Lid, C-Kluster Expotrade Pvt. Ltd., Ekon Crystalmerchats Pvt. Lid., Meticulous Overseas Pvt. Ltd., Ninad Overseas Pvt. Ltd., Parees Overseas Pvt. Ltd., White Opal Expotrade Pvt. Ltd.

Mr. Doshi was arrested on August 17 and remanded in judicial custody.



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