The Enforcement Directorate (ED) recently carried out search operations at 25 locations in Ahmedabad, Gandhinagar, Bhavnagar, Botad, Gandhidham, Mumbai, and Bengaluru in a GST fraud case registered against Mohammad Ejaj Bomar and others, an official said on Monday.
“Fake invoices of more than Rs 1,102 crore, involving evasion of GST of Rs 122 crore, using 461 bogus firms were issued by the accused. This is based on GST fraud as per Bhavnagar police charge sheet,” said the ED.
In this search action, the premises of accused persons who were involved in preparing bogus documents on the basis of which fake GST firms were made and the entities which were used for providing bogus Input Tax Credit (ITC) were covered.
The ED initiated money laundering investigation based on FIRs registered by Bhavnagar Police under various sections of IPC, against Bomar and others.
“As per the charge sheet, these accused persons changed the mobile number linked to Aadhar card of several persons promising them financial assistance under government schemes and later on, used these Aadhar for obtaining PAN and then GST registration. As per the police charge sheet, fake invoices of more than Rs 1,102 crore involving evasion of GST of Rs 122 crore using 461 bogus firms were issued,” said the official.
The official said that modus operandi of this fraud is that accused created fake entities through forged documents to obtain GST registration. Later these fake entities passed on Input Tax Credit to beneficiaries by generating fake invoices on commission basis. Payment for these fake invoices were made through banking channels and later on the amount was settled in cash between operator of fake entity and beneficiary.
“During the course of search action, incriminating documents in huge quantity such as form for changing mobile number of Aadhar cards, fake bills issued from these bogus entities, and digital evidences were seized under the provisions of the PMLA. Further during the course of search cash amounting to Rs 29 lakh has also been seized,” the ED said.
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