Three Arrested in Rs 40.66 Crore ITC Fraudulent Racket

The Thane Central Goods and Services Tax and Central Excise commissionerate arrested three individuals involved in a Rs 40.66 crore fraudulent Input Tax Credit racket. The accused, including alleged mastermind Bhaven Kachiyapatel, created 19 bogus firms to perpetrate the scam. All three are now in judicial custody.

The Thane Central Goods and Services Tax and Central Excise commissionerate arrested three individuals on Friday in connection with a fraudulent Input Tax Credit (ITC) racket, according to official sources. The scam has caused a loss of Rs 40.66 crore to the exchequer.

Bhaven Kachiyapatel, cited as the mastermind, along with Dileep Bhatt and Hardik Shah, played key roles in executing the fraudulent scheme, a release from the commissionerate stated. The accused reportedly set up 19 bogus firms to claim fraudulent ITC amounting to Rs 40.66 crore, while fraudulently passing on ITC worth Rs 34.74 crore.

A local magistrate has placed all three accused in judicial custody for 14 days as further investigations are being conducted.

(With inputs from agencies.)