BHUBANESWAR/ROURKELA: The State GST enforcement wing has unearthed fake invoicing worth Rs 1,727.91 crore and arrested five persons in this connection on Wednesday.
Sources said that 12 teams consisting of 48 officers of the enforcement wing assisted by 35 police officials have nabbed director and ex-director of three Rourkela-based companies - Swastik Ingot Pvt Ltd, Sunayana Metal Industries Limited and Sai Ram Ingot Pvt Ltd.
The arrested include Dhanwan Shaw, Ram Bharose Shaw, Manoj Kumar Pandey along with proprietor of Subash Traders Subash Kandulana and their associate Niku Singh alias Chhatar Singh. They were allegedly involved in availing and passing of bogus input tax credit (ITC) worth Rs 311.03 crore on the strength of fake invoices to the tune of Rs 1,727.91 crore.
The five persons in addition to their own companies created and operated 23 other fictitious/non-existent business entities in Sundargarh district for making bogus transactions in their name and to avail and pass on ITC without physical receipt and supply of goods, officials said.
Investigation revealed that the accused had created and operated 24 bogus firms by obtaining identity documents like PAN, Aadhar and bank passbook of innocent people like a primary school teacher, LIC agent, crane operator, daily-wage earner, farmer, street vendor, vehicle registration agent and housewives on the pretext of providing them regular monthly income ranging from Rs 5,000 to Rs 40,000 per month.
They had also opened bank accounts in different public and private sector banks in the name of innocent persons and operated by obtaining signed cheques, RTGS form, ATMs and password from the account holders.
Officials said that goods weighing in tonnes are shown to have transported through two-wheeler, cars, three-wheeler, scooter and moped as verified from the waybills generated in the name of the fake firms.
A GST official said the goods were manufactured/purchased in favour of two firms - Swastik Ingot Pvt Ltd and Sunayana Metal Industries Ltd without payment of tax. The purchase and sale invoices have been raised in the name of fictitious firms to regularise the illegal transaction and evade tax.
Transactions in 49 bank accounts opened in different names have been examined and 173 persons interrogated to substantiate the charges and unearth the circular trading, he informed. The accused persons were produced in the court and remanded in judicial custody.
The State enforcement wing has so far arrested 28 people involved in generation of fake invoices worth Rs 9,196.26 crore for availing and passing bogus ITC of Rs 1,739.84 crore.