25 October 2019
Cuttack: The State GST enforcement authorities of Odisha have arrested four persons for their involvement in fraudulently availing and passing of bogus input tax credit of Rs 128 crore and Rs 138 crore respectively on the strength of fake invoices.
The accused are - Rama Chandra Mallick of Jajpur, partner of Biraja Steel, Dindayal Agarwal of Rourkela, lessee of Biraja Steel, Aditya Nayak of Rourkela, partner of Biraja Steel, Director of Anantabhuja Construction and Atul Bansal of Rourkela who is the mastermind in this multi-crore fraud. They have been booked under Sections 132(1)(c), 132(1) (b) 132(1)(1) of OGST Act.
Investigation conducted so far revealed that Bansal along with others have created as many as 20 fictitious and dummy firms in the name of housewives, taxi drivers, dally wagers, plumbers and. unemployed youth.
“They fraudsters obtained identity documents from these gullible lot promising them employment and used the same document for creating dummy firms. Later these firms were used to show purchase of iron and steel goods worth Rs 603 crore and sale of Rs 743 crore without tax payment,” said Manabhanjan Acharya, Additional Commissioner Of Commercial Taxes.
“To hoodwink the Department and legalise fake transactions, bank accounts were opened in the name of these dummy firms. Huge amount of cash transactions were done through these accounts which is being investigated,” Acharya added.