GST intelligence officers of Gurugram Unit has arrested two more persons — a chartered accountant and a dealer– for alleged involvement in the Rs 176-crore input tax credit (ITC) fraud racket, the Finance Ministry said on Wednesday.
The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit had earlier busted a case wherein total fake ITC of Rs 176 crore has been fraudulently passed on by Sanjay Goel, Prop of M/s. Redamancy World, and Deepak Sharma, the de-facto controller of eight non-existent firms. Accordingly, Goel and Sharma were arrested then.
The ministry said on further investigation by GST officers , the role of two more key persons — Manish Modi and Gaurav Agarwal — has also surfaced.
Modi and Agarwal were arrested on August 23 by DGGI officers for fraudulently passing on fake ITC of more than Rs 36 crore and 15 crore, respectively, it said.
“Based on details revealed by further investigation this office has arrested, Manish Modi, Chartered Accountant, resident of Pitam Pura, New Delhi, on charges of creation of running racket of fake firm in order to fraudulently pass on fake ITC, without actual supply of goods or services,” the statement added.
It was found that Manish Modi is managing/controlling fake firms M/s. Nivaran Enterprises, and M/s Panchwati Enterprises through which he has fraudulently passed on fake ITC to the tune of Rs 36 crore, the ministry added.
Further, he has also been found in possession of incriminating evidence indicating many more such firms might be controlled/managed by him for similar purposes, further investigation for the same is under way, the ministry added.
“Name of Gaurav Agarwal, Partner of M/s. Agarwal & Company (authorized dealer of ITC) has also emerged as another key person involved in the instant racket of ITC fraud. He has fraudulently passed on fake ITC amounting to Rs 15 crore (including GST and cess), thus has been arrested by this office on similar charges,” the ministry added.