Mumbai CGST Busts Rs 34.74 Crore Fraudulent ITC Operation, Arrests Mastermind and Accomplices

The Mumbai CGST & CX Zone has dismantled a Rs 34.74 crore fraudulent Input Tax Credit (ITC) operation involving 19 fake entities, leading to the arrest of key figures. Critical documents and evidence were seized, revealing further fraudulent activities. The suspects are now in judicial custody.

A major fraudulent Input Tax Credit (ITC) operation involving 19 fake entities has been dismantled by the Thane Central Board Of Indirect Taxes & Customs (CGST) and Central Excise (CX) Commissionerate, part of the Mumbai CGST & CX Zone. The fraud, amounting to Rs 34.74 crore, led to the arrest of the mastermind and his two accomplices.

Authorities conducted follow-up searches, uncovering incriminating evidence such as fake invoices, chequebooks, laptops, and pen drives detailing the fictitious firms. The mastermind, Bhavesh Kachiyapatel, with accomplices Dilip Bhatt and Hardik Shah, orchestrated the scheme by recruiting individuals under monetary inducements.

These individuals provided identification documents, including AADHAR and PAN cards, which were misused to register GST accounts in their names, falsely designating them as Proprietors or Directors. Bank accounts were also opened in the names of these fictitious companies. The fraudulent ITC worth Rs 40.66 crore was floated, with Rs 34.74 crore illegally passed on to other entities. Following their arrest, the suspects were presented before the Chief Judicial Magistrate in Thane and remanded to judicial custody for 14 days, until September 13. Further investigations are ongoing.

(With inputs from agencies.)