Cuttack, October 26 (LocalWire): The enforcement department of the Goods and Services Tax (GST) in Odisha has busted a large-scale interstate racket and arrested four persons for fraudulently availing Rs 138 crore refund using fake invoices.
The arrested persons include Rama Chandra Mallick, a partner of M/S Biraja Steel of Jajpur, it’s lessee Dindayal Agarwal of Rourkela, it’s another partner Aditya Nayak of Rourkela who is also the Director of M/S Anantabhuja Construction and Proprietor of M/S Akhandalamani Enterprises and Atul Bansal of Rourkela.
They have been booked under Sections 132 (1) (c), 132 (1) (b), and 132 (1) (i) of the OGST Act.
Briefing media persons, Odisha CT and GST commissioner Sushil Kumar Lohani said that Atul Bansal, the mastermind behind the multi-core fraud along with others had created over 20 fictitious and dummy firms in the name of housewives, taxi drivers, dally wagers, plumbers, and unemployed youths.
“The fraudsters had obtained identity documents from these gullible by promising them employment and created dummy farms by using the same documents. Later these firms were used to show the purchase of iron and steel goods worth Rs 603 crore and sale of Rs 743 crore in their name, without tax payment and passed on bogus ITC worth 138 crore to recipients located in and outside the state,” Lohani stated.
To legalise fake transactions and to hoodwink the department, bank accounts were opened in the name of these dummy firms.
A huge amount of cash transactions was also done through these accounts, which are currently under investigation, he said.
During the course of the investigation, many of the dummy (shell) farms were found to be non-existent and not operating from their registered place of business.
Most of the accused have confessed that they were neither doing any business, nor making any sales and purchase.
Some of them have also admitted that the transactions reflected in their returns are paper transactions without actual receipt and supply of goods, Lohani stated.