ACB Cracks Down on GST Refund Scam: Two More Arrests

The Anti-Corruption Branch (ACB) has arrested Manoj Kumar and Vishal Kumar in a GST refund fraud involving the Delhi Trade and Taxes department. Allegedly, fraudulent refunds worth Rs 54 crore were processed for non-existent firms. The scam includes 500 fake companies and invoices worth Rs 718 crore.

The Anti-Corruption Branch (ACB) has made further progress in dismantling a major GST refund scam, making two new arrests in the case involving the Trade and Taxes department of the Delhi government, officials reported on Thursday.

The latest detainees, identified as Manoj Kumar, an accountant, and Vishal Kumar, a chartered accountant, are closely tied to the massive fraud scheme, said Madhur Verma, Joint Commissioner of Police (ACB). 'Both individuals are primary recipients of the fake GST refunds,' Verma added. Earlier in August, the ACB had apprehended nine others, including GST officers, advocates, and transporters.

The investigation began in September 2021 when the GST department's Vigilance team suspected foul play in issuing refunds. A special team found all involved firms to be non-existent. The probe revealed that fake GST refunds worth Rs 54 crore were issued, with forged invoices worth Rs 718 crore discovered. The ACB's inquiry is ongoing, targeting the involvement of other GST officials and perpetrators.

(With inputs from agencies.)