Noida Police Cracks Down on GST Fraud, Arrests 29

The Noida Police have made significant progress in their investigation into a GST fraud case, resulting in the arrest of four more individuals from Delhi. This brings the total number of arrests to 29. The investigation has uncovered a network of 250 bogus companies used to claim fraudulent tax benefits, and over Rs 3 crore of ill-gotten money has been frozen in bank accounts linked to the accused.

Noida, December 7: In a significant development, the Noida Police have apprehended four individuals from Delhi in connection with an ongoing investigation into a large-scale Goods and Services Tax (GST) fraud case. This brings the total number of arrests made in the case to 29, as the authorities continue to unravel a complex web of fraudulent activities.

Modus Operandi of the GST Fraud

The investigation has revealed the existence of approximately 250 bogus companies that were meticulously created to exploit tax benefits under the GST regime. These companies engaged in fictitious import-export transactions with foreign entities based in countries such as Singapore, Vietnam, Taiwan, Thailand, and the Philippines. By exploiting this fraudulent network, the accused managed to siphon off substantial amounts of money, resulting in significant revenue losses for the government.

Freezing of Ill-gotten Funds and Data Recovery

As part of their comprehensive investigation, the Sector 20 police station officials have successfully frozen around Rs 3 crore in eight bank accounts linked to the arrested individuals. Additionally, they have recovered crucial data pertaining to the 250 bogus companies that were used to fraudulently claim input tax credit. This data includes forged documents, such as 41 stamp seals, 18 Aadhar cards, 16 PAN cards, 54 SIM cards, and 20 bank cheque books, among other items.

Key Arrestees and Their Roles

The four individuals arrested in this latest phase of the investigation have been identified as Rahul Nigam (29) and Piyush Kumar Gupta (36), both residents of Shahdara in Delhi, Dilip Sharma (29) from Indralok, and Rakesh Kumar (47) from Peetampura. These individuals played crucial roles in the GST fraud scheme, with Piyush Kumar Gupta, an MBA graduate from Delhi University, emerging as a key figure in the operation.

Mastermind Behind the Fraud

The mastermind behind this elaborate fraud is believed to be a person named Nishant Agarwal, who is currently at large and suspected to have relocated to Mumbai to evade arrest. Investigations have revealed that Nishant Agarwal used to travel to foreign countries to maintain the facade of his bogus companies and facilitate their fraudulent activities.

Modus Operandi of the Gang

The police have described the accused as part of a well-organized gang involved in GST fraud. Their modus operandi involved creating fake e-bills for input tax credit worth approximately Rs 70 lakh to Rs 80 lakh every day. This fraudulent scheme resulted in substantial losses of revenue for the government.

Legal Charges and Ongoing Investigation

The arrested individuals have been charged under various sections of the Indian Penal Code, including cheating, forgery, and criminal conspiracy. The Noida Police, in collaboration with the GST department, are actively pursuing the investigation to apprehend the remaining members of the gang and bring them to justice.

This major breakthrough in the GST fraud case highlights the commitment of the Noida Police to combating economic crimes and safeguarding the interests of the nation. The ongoing investigation aims to dismantle the entire network of fraudulent companies and individuals involved in this illicit activity, ensuring that justice is served and public revenue is protected.