Massive GST Scam Unveiled: Rs 3,200 Crore Fraud in Bengaluru

The Directorate General of GST Intelligence in Bengaluru exposed a Rs 3,200 crore GST fraud, arresting two individuals while a third remains on the run. The scandal involved fake companies, circular trading, and fraudulent Input Tax Credit. The probe continues investigating the elaborate scheme's public impact.

The Directorate General of GST Intelligence (DGGI) has unearthed a staggering Rs 3,200 crore GST fraud in Bengaluru, leading to the arrest of two individuals. A third suspect remains at large, according to Sucheta Sreejesh, Additional Director General of DGGI Bengaluru zone.

Extensive searches across Bengaluru and Mumbai revealed a convoluted scam involving fake companies lacking genuine business operations. These companies engaged in circular trading to boost turnover and were falsely listed on stock exchanges, amassing fake Input Tax Credit worth Rs 665 crore, officials disclosed.

Sreejesh highlighted that the DGGI's Bengaluru Zonal Unit is delving into the fraud's depth and its ramifications on the public. Evidence gathered suggests that the perpetrators manipulated multiple companies via shared IP addresses and coordinated financial records, underscoring the investigation's severity.

(With inputs from agencies.)