Noida billionaire businessman arrested in multi-crore GST fraud case

The case, dubbed the “GST Scam”, came to light in June 2023. (representative)

Noida:

Noida police on Wednesday said they had made a breakthrough in the goods and services tax (GST) fraud case by arresting two “billionaire businessmen” from Haryana for allegedly masterminding a multi-crore rupee siphon from the finance ministry. Loss of income.

A senior police officer said the accused were involved in the metal scrap business and had caused a total revenue loss of around Rs 25 crore to the exchequer.

Dubbed the “GST Scam”, the case, which came to light in June 2023, involved loss of revenue to the finance ministry through input tax credit (ITC) claimed by thousands of fake companies using forged documents.

Police investigations have revealed the involvement of hundreds of fake companies and transactions worth around Rs 10,000 crore, according to officials, and more than two dozen people have been arrested in the case so far.

Deputy Commissioner of Police (Crime) Shakti Mohan Avasthy said that a few months ago, a team from Sector 20 Noida police station busted a criminal gang and arrested some suspects who were allegedly behind the wheel of around 2,600 fake companies.

“According to the case, the mastermind of the scam who fraudulently claimed ITC from the government and caused loss of revenue to the exchequer was arrested on Wednesday. The masterminds are billionaire businessmen and have been identified as Sanjay Jindal and Ajay Jindal Ajay Sharma,” Awasthi told reporters. The reporter is here.

“Jindal ran a company named AS Brownie Metal and Alloys in Sonipat district of Haryana. He fraudulently claimed ITC worth Rs 1.69 crore. The amount was later frozen by law enforcement agencies. Sharma used six companies to cause 857 crore. This amount was also later frozen by the GST department, according to the Noida police report,” the official said.

Awasthi, who has been investigating the matter since it came to light, said both accused were “billionaire businessmen” with “huge businesses” in Sonipat.

Jindal and Sharma were wanted by Noida police for a long time and a reward of Rs 25,000 each was offered for information leading to their arrest, the DCP added.

“Jindal and Sharma are the masterminds of this scam. They are the real beneficiaries of this fraudulent business of floating fake companies and claiming ITC on their behalf. We have arrested 32 people so far in connection with this case People and more in connection with the case will be held soon,” he said.

Police said an FIR was lodged at the Sector 20 police station under sections 420 (cheating), 467, 468, 471 (all related to forgery) and 120B (criminal conspiracy) of the Indian Penal Code. .

Last month, Noida police seized assets worth around Rs 12 crore, including immovable properties at various locations in Delhi, from gang members involved in the GST “scam”.

The case came to light in June 2023 when goons applied to register fake companies by fraudulently using a journalist’s PAN details and registered two companies – one in Punjab and one in Maharashtra Bang – while also requesting the registration of a third such company. Company registered in Delhi rejected by GST authorities.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)