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Yet another GST fake invoice racket busted

Published: Oct 24, 2019

By TIOL News Service

GURUGRAM, OCT 24, 2019: The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit had arrested Mr Rajiv Gupta yesterday for orchestrating a racket involving fake invoices valued at more than Rs 136 crores thereby defrauding the Government of more than Rs 20 crores. Mr Gupta is a partner in M/s RST Batteries, Mundka Delhi and Director of M/s RST Batteries Pvt. Ltd Bahadurgarh, Haryana.

This fraud was given effect to by issuing fake invoices by creating a web of more than 52 fake firms. These fake firms were used to issue bogus invoices which were passed on to various dealers and manufacturers who used them for discharging Government duty, in essence defrauding the Government of huge amounts of revenue.

Mr Gupta was absconding from the authorities since 12.07.2019. After several attempts the sleuths of DGGI traced him to a location in Delhi where he was apprehended. Given the quantum of evasion this offence is categorised as cognizable and non-bailable under GST law. Gupta was produced before the Additional Chief Judicial Magistrate, Gurugram, who remanded him to 14 days of judicial custody.

The Gurugam Zonal Unit of DGGI has so far arrested 10 persons in similar cases thereby unearthing fake invoices more than Rs 1,500 crores, which has defrauded the sovereign exchequer of more than Rs 280 crores.

Investigation in the above matter is underway and the figures are likely to go up.