Nagpur: The Directorate General of GST Intelligence (DGGI), Nagpur Zonal Unit in continuation with its efforts to apprehend the person behind the fraudulent refunds scam of Rs 212.67 crore unearthed in the first week of July, 2021 conducted searches at Faridabad, Ghaziabad, Noida, Guwahati and Chennai on July 13. The coordinated pan India searches at multiple places enabled the DGGI, Nagpur Zonal Unit to identify additional eight non-existent entities in the fraudulent Input Tax Credit (ITC) network spread across India which had availed fraudulent ITC of Rs 222.09 crore. The investigations have further revealed that it was these non-existent entities which had passed on fraudulent ITC to the three non-existent entities of Nagpur which had taken refunds out of the fraudulent ITC so availed by them.
The officers of DGGI, Nagpur Zonal Unit also nabbed a person from Ghaziabad who was in-charge of preparation of fake invoices of this network and who was handling the bank accounts of non-existent firms in which fraudulent refunds of Rs 123.97 crore were transferred and utilised. The person was arrested on July 14 and has been remanded to Judicial Custody by the court till July 28.