Punjab: Directorate General of GST Intelligence arrests Rs 1,600 crore bogus billing kingpin

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In perhaps one of the biggest cases of bogus billing busted in recent times, a leading businessman of Mansa in Punjab was arrested by Directorate General of GST Intelligence (DGGI) Ludhiana, who is accused of fleecing the government of about Rs 80 crore by doing bogus billing of Rs 1,600 crore. Based upon this fictitious turnover, the businessman is also believed to have fooled a nationalised bank by managing to avail loans to the tunes of several hundred crores.

The arrested businessman is a director in a spinning mill and had created web of dozens of fictitious companies in and around Mansa which were either being run on the name of his relatives, friends, staff members and these firms were only involved in circular trading worth thousands of crores and no actual transfer of goods was taking place between them.

A big operation was launched by DGGI zonal office Ludhiana in which teams of officers under directions of Additional Director General, IRS Arvind Madhavan searched multiple premises to establish the chain of this unprecedented fraud in a small city like Mansa. To department’s shocker some of the addresses on which the firms used in this fraud were shown registered were either non-existent or small time shops dealing in kirana and in some cases one room house.

Meanwhile speaking to TOI a source who wished not to be named said, “The accused is director in a renowned spinning mill in Mansa and he used to issue invoices without any accompanying goods (cotton yarn in this case). It has also learnt that this fraud was done mainly for enhancement of assessed bank limit and in the guise of bogus business transactions his company has taken loans of hundreds of crore from a nationalised bank. In recent days DGGI and other GST authorities have started action against such perpetrators”

Source from: https://timesofindia.indiatimes.com/city/ludhiana/punjab-directorate-general-of-gst-intelligence-arrests-rs-1600-crore-bogus-billing-kingpin/articleshow/79452247.cms