Gift card fraud: 1 lakh PAN cards misused

Gift card fraud: 1 lakh PAN cards misused

Central GST officials have found 950 mobile phone sets and 29,000 SIM cards kept in bags at a home in Fatehabad district during a raid.

Deepender Deswal
Tribune News Service
Hisar, June 26

Central GST officials have found 950 mobile phone sets and 29,000 SIM cards kept in bags at a home in Fatehabad district during a raid.

This has led to the exposure of a Rs 1,500 crore financial fraud wherein persons owning fake firms used to procure gift cards from banks and sold or self consumed those by swiping on POS machines to pocket commission and evade GST.

Banks issued 15 lakh cards

  • In 10 months, transactions amounting to Rs 1,500 crore were done through gift cards in Hisar and Fatehabad
  • Of these, transactions of Rs 250 crore were done during the lockdown when economic activity had almost stopped
  • Each gift card was valued at Rs 10,000. Companies earned 2% (Rs 200) on each card; 15L cards were issued

The officials also found data of one lakh PAN numbers from a person who was also involved in the fraud. The transactions of gift cards worth Rs 1,500 crore in past 10 months in Hisar and Fatehabad districts have come to light which are in violation of RBI guidelines.

Sources said the Central GST has frozen debiting from the bank account of one of the major parties in the case.

The case will be filed on completion of the inquiry. “On the seizure of 950 mobile phones from a person in Bhattu village in Fatehabad district, the person immediately deposited duty of Rs 17.1 lakh for the phones,” an official said.

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