Gujarat Mastermind Arrested in Rs 8,000 Crore GST Fraud Case in Pune
Koregaon Park, 27th October 2024: The Pune office of the Goods and Services Tax Department has uncovered a massive tax evasion scheme amounting to ₹5,000 to ₹8,000 crore, facilitated by the submission of documents in the name of a fake company. A case has been registered at Koregaon Park police station, following the investigation that led to the arrest of the mastermind behind the operation, who hails from Gujarat. In total, eight individuals have been implicated in this case.
Rishi Prakash, a 39-year-old officer from the GST Pune Department, lodged a complaint at the Koregaon Park Police Station. The accused include Ashrafbhai Ibrahimbhai Kalwadia (50) from Surat, Gujarat, along with Nitin Bhagoji Berge from Ghatkopar, Faisal Abdul Ghaffar Mewawala from Mumbai, Nizamuddin Mohammed Saeed Khan from Bhiwandi, Amit Tejbahaddur Singh from Ulhasnagar, Rahul Batukbhaiyya Baraiya, Kaushik Bhupatbhai Makwana, and Jitendra Mukeshbhai Gohel.
Prakash, who is part of the GST investigation team, reported that an online audit of Pathan Enterprises in October 2023 revealed irregularities. Although the company was registered for GST, it was discovered that no goods were being bought or sold; only payments were being processed. Further investigation in the Shewalwadi area of Hadapsar confirmed that the address provided for GST registration was fraudulent. The establishment was registered under the name of Pathan Shabbir Khan Anwar Khan, who was found to be a rickshaw puller residing in Bhavnagar, Gujarat, with no knowledge of Pathan Enterprises.
The investigation team conducted an extensive online inquiry, uncovering connections between several GST-registered companies operating under the same mobile number and email address. They examined bank accounts linked to the scheme and discovered that an account holder, Jit Kukdia, a security guard, had opened the account for his acquaintance, accused Kaushik Makwana, and Jitendra Gohel.
The GST investigation team executed operations across Pune, Mumbai, Rajkot, and Bhavnagar, ultimately capturing Kalwadia at a lodge in Mira Bhayandar. Authorities seized 21 mobile phones, two laptops, 11 SIM cards, debit cards, chequebooks, and rubber stamps belonging to various companies. Kalwadia has been arrested and presented before the Shivajinagar court in Pune, where he has been remanded to judicial custody for 14 days. Senior Police Inspector Runal Mulla of Koregaon Park Police Station is overseeing the ongoing investigation.
The investigation revealed that Kalwadia and his accomplices—Nitin Berge, Faisal Mewawala, Amit Singh, Jitendra Gohel, Kaushik Makwana, and Rahul Baraiyya—collaborated to set up 246 fake companies aimed at evading GST tax. The group allegedly took payments from unsuspecting businessmen while generating fraudulent documents to facilitate the tax evasion scheme, which has reportedly allowed them to evade government taxes between September 2018 and March 2024.
