Punjab GST dept uncovers bogus billing scam involving fraudulent transactions worth Rs 163 crore

The Punjab GST Department has unearthed a bogus billing scam in Ludhiana, involving fraudulent transactions worth Rs 163 crore over the past two years.

Announcing this here on Friday, Finance Minister Harpal Cheema said the investigation revealed that M/s Monga Brothers (Unit-II), Buddewal Road, Ludhiana, was operating a complex web of fictitious firms, creating fake Input Tax Credit (ITC) and defrauding the state exchequer.

He said the firm had made purchases from 60 bogus firms, which were either suspended, cancelled, or had made purchases from suspended or cancelled dealers.

The minister said the total turnover of these 60 firms is around Rs 1,270 crore. He said the Punjab GST Department conducted an inspection, search, and seizure under Section 67 of the Punjab GST Act, on the business premises of M/s Monga Brothers (Unit-II).

"Based on the investigation, the Taxation Commissioner ordered the arrest of the partners of M/s Monga Brothers (Unit-II) under Sections 69 and 132 of the Punjab GST Act,” he said.