Two arrested for GST fraud in Malappuram

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A special squad of Valancheri police arrested two persons in connection with the mutli-crore Goods and Service Tax (GST) fraud case, on Wednesday. The arrested were P R Rashid Rafeeque, 30, native of Thrikkavu in Ponnani and Faizal Nasar, 24, native of Karukathiruthi near Ponnani. The accused who have been arrested by the team led by station house officer of Valanchery police T Manoharan, were produced before judicial first class magistrate court in Tirur. Police have already confirmed fraud of Rs 107 crore, by registering fake firms.

It was after receiving various complaints regarding the fake billings and invoices that Valanchery police registered case and initiated probe. M Yusuf from Valanchery, had lodged complaint that bogus GST registration in his name was misused by a gang of people. Later Edayoor native Ranjith also approached police, when a group of GST officials approached seeking explanation regarding fake firm ‘Raj Enterprise’ which was created in his name. Following this police had conducted raids and inspections in houses of accused and seized various documents including fake bills and invoices. The accused were found to be operating three fake firms created to facilitate fraudulent input tax credit (ITC).

Operation of the racket of fake issuance of invoices without actual supply of goods and services, was based in Malappuram Kozhikode, Kasargod, Palakkad, and Thrissur district. SHO, Manoharan said that the prime accused of the case is absconding, and the special team has already launched search for him. “It is first time in the state that accused of GST fraud case is being arrested and the investigation team will conduct a detailed investigation on the connection of accused with rackets in other states, which are engaged in similar operations”, he said.

Read More at: https://timesofindia.indiatimes.com/city/kozhikode/two-arrested-for-gst-fraud-in-malappuram/articleshow/72147299.cms