According to the official sources, a fake GST credit racket was involved in the business of processing, generating and passing the fake Goods and Services invoices. This scam is estimated to be more than 100 crores.
Based on the potential links and inputs provided by the CGST department of Madhya Pradesh, the police have arrested two persons from the surat city in the state of Gujarat by now. According to the officials, the two persons who were the key operators of the alleged fake racket and one of their close accomplices were arrested during the raid conducted by the Madhya Pradesh police. All of them were taken to Indore on Saturday.
Several fake details, documents and other things were seized and recovered by the Madhya Pradesh police. These include the details of more than 500 fake firms along with the fake incriminating documents, several materials, data, several mobile phones etc. Apart from all these fake things, around 300 bogus and fake firm seals and letter pads were also recovered during the search operation.
According to the official sources, the racket used forged documents, addresses and fake identities to register firms and to generate and pass fake GST credit using multiple layers of transactions. They used to avoid conventional banking channels to avoid getting busted. They were routing the transactions via mobile phone wallets accounts linked with different mobile numbers.
They were also involved in identity theft apart from defrauding and duping the government revenues. According to the principal commissioner of the CGST and Central Excise Indore, both the arrested person are currently on remand for the purpose of further investigations and searches.