Sleuths of Meerut zonal unit of Directorate General of GST Intelligence (DGGI) have arrested a cement trader and mastermind of Rs 274 crore GST fraud from his “secret office” in Mayur Vihar (Delhi). Jain was produced before a special court of Chief Judicial Magistrate (CJM) in Meerut and sent to jail.
Accused Sanjay Jain is allegedly involved in availing and passing on of fake Input Tax Credit (ITC) to various traders and endusers through his six fake parent companies and seven intermediary firms.
Scrutiny of GST returns revealed that fake ITC to the tune of Rs 77 crore were availed by 12 Delhi NCR-based entities out of numerous end-users in the chain. Multiple searches were conducted at different locations in Delhi NCR in December last year, but he managed to escape.
Other investigating agencies, including the income tax department, were also chasing Jain, said sources.
According to additional director general, DGGI, Pradyumn Tripathi, “Officers of the Meerut zonal unit kept a close surveillance on his aides, residences, farm houses and other possible hideouts, but he kept shifting his location frequently. It was learnt that he was mostly staying in Jain temples in NCR region. Several attempts and visits were made during the past two months to nab Jain, and finally on Saturday his close associate was apprehended.”
“Based on the leads shared by the associate, a secret office (which was created after the raid by the income tax department) of Jain was traced. A search was conducted at the secret office and incriminating documents, evidences and rubber stamps related to 56 fake firms were recovered. After a well coordinated search operation, Jain was finally apprehended from Mayur Vihar, Delhi, where he had come to visit his friend,” added Tripathi.
According to intelligence officer Aishwarya Attrey, “In his statement, Sanjay Jain has categorically admitted that he created eight fake companies in the names of his family members, employees, etc, wherein he issued fake GST invoices having value of more than Rs 1,000 crore involving fraudulent ITC to the tune of Rs 285 crore.”
Also Read: GST Compliance Calendar for the month of February, 2021
Source: timesofindia.com
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