The Directorate General of GST Intelligence (DGGI) has arrested the kingpin in the Rs 219 crore worth of fake invoice scam on Wednesday. Sources said that Vishal Sonawala was arrested by the DGGI’s Surat wing. The accused had fraudulently claimed an input tax credit (ITC) worth Rs 21 crore by submitting fake invoices without actual supply of goods worth Rs 120 crore. Earlier, the DGGI had raided two firms located in Palanpore and LP Savani road identified as Sunrise Enterprise and Subham Traders after receiving intelligence on the fake billing scam on July 27. The DGGI sleuths recovered records and documents related to the fake billing scam from both the spot.
Official sources said that on examining the documents, it was found that both the firms indulged in issuing fake invoices without actual supply of goods to the tune of Rs 219 crore in violation of the provision of CGST Act, 2017 and IGST Act, 2017 for the wrongfully availing of ITC credit from the government. However, Chandrakant Jadav of Sunrise Enterprise and Devang Parekh, proprietor of Subham Traders were arrested by the DGGI and that they were produced before the district court which sent both to judicial custody. Sources revealed that Sonawala had planned the entire scam in 2017. Sonawala approached Devang Parekh, proprietor of Subham Traders and that the duo, in turn, approached Chandrakant Jadav in January-2017 regarding the proposed venture of fake billing scam. However, Jadav agreed to work as a partner of both the accused and that he provided all the details including PAN card for taking GST registration of his firm. An officer asking anonymity said, “The accused has been handed over to the Surat city police and that he will be produced before the court on Thursday.”