DGGI’s Gurugram Zonal Unit arrests 2 persons in fake input tax credit racket case

Mukesh Ranjan

Tribune News Service

New Delhi, August 25

The Director General of GST Intelligence (DGGI) on Wednesday said its personnel of Gurugram Zonal unit have arrested two persons – a chartered accountant and a dealer – for alleged involvement in the Rs 176-crore input tax credit (ITC) fraud racket.

The Zonal Unit of the DGGI had earlier busted a case wherein total fake ITC of Rs 176 crore had been fraudulently passed on by Sanjay Goel, prop. of M/s Redamancy World, and Deepak Sharma, who were de-facto controllers of eight non-existent firms. Accordingly, Goel and Sharma were arrested then, the intelligence agency said.

In an official statement, the DGGI said that on further investigation, the role of two more key persons – Manish Modi and Gaurav Agarwal – has come to light and they were arrested on August 23 for fraudulently passing on fake ITC of more than Rs 36 crore and Rs 15 crore, respectively.

“Based on details revealed during further investigation this office has arrested Manish Modi, chartered accountant, resident of Pitampura, 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 read.

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 of Rs 36 crore, it added.

Further, he has been found in possession of incriminating evidence indicating that many more such firms might be controlled and managed by him for similar purposes, and further investigation for the same is under way, the DGGI said.

“Name of Gaurav Agarwal, partner of M/s Agarwal & Company (authorised 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,” it said.