GST: DGGI Pune Zonal Unit Busts Rs 561.58 Crore Fake ITC Scam, Mastermind Arrested
Pune, 10th October 2024: The Directorate General of GST Intelligence (DGGI), Pune Zonal Unit, has unearthed a massive fake Input Tax Credit (ITC) scam amounting to Rs. 561.58 crore. The detection of this fraudulent activity has led to the arrest of the mastermind, Mohammed Riyaz Uddin, based in Hyderabad, Telangana.
The DGGI officials, acting on intelligence inputs, identified the fraudulent activities carried out by M/s N.L. Traders, a Pune-based entity. M/s N.L. Traders had falsely claimed ITC of Rs. 2.27 crore from firms that were ab-initio cancelled. Further verification revealed that M/s H.B. Trading Company, a Hyderabad-based firm, was non-existent at its declared address.
Detailed investigation, including IPDR/CDR analysis of e-way bills and call records, traced the filing of e-way bills for M/s H.B. Trading and 57 other fictitious firms back to Riyaz Uddin. A raid on his residence on 8th October 2024 led to the seizure of approximately 2,600 fake invoices, five rubber stamps of different companies, and a pendrive containing IDs and passwords of active firms. The laptops found at his premises were equipped with tally software, which was being used to generate fake invoices and e-way bills for a total of 58 entities.
The investigation revealed that Riyaz Uddin orchestrated a sophisticated network of fake invoices and e-way bills without any actual supply of goods or services. This enabled the fraudulent passing of ITC to the tune of Rs. 561.58 crore, causing a substantial loss to the government exchequer.
Riyaz Uddin was arrested in Hyderabad for his key role in this elaborate scam involving fake GST firms. A recovery of Rs. 3.94 lakh has been made so far, and further investigations are underway to uncover the full extent of the fraud and identify other individuals or entities involved.
The DGGI Pune Zonal Unit continues its probe into this high-profile case, which highlights the growing menace of fake ITC scams in India.
