Ahmedabad: In a major development, the state goods and services tax (SGST) department has uncovered a massive fake billing scam worth Rs 1400 crore in Ahmedabad. The department has arrested a man named Rakesh Choksi who was allegedly the mastermind behind the scam.
According to SGST officials, Choksi had set up three fake companies, namely Nadol Traders, Mangalam Impact, and Shree Enterprises. The companies only existed on paper and were established using the Aadhar card, PAN card, and other documents of economically weak individuals. The accused had fraudulently availed input tax credits worth Rs 41 crore using these bogus entities.
The SGST department raided the fake companies and the accused's residence at Kala Tirtha apartment in Manek Chowk area. During the raids, officials found that the accused used to hide all documents in the cabin of the housing society's security guard. All digital documents and laptops have been seized from the cabin and the security guard's statements have also been recorded.