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.
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Choksi has been produced before the Metropolitan Court and has been granted remand till March 17. After completing his remand period, he will be produced before the court again. Further proceedings will be held in this connection, said an official.
The fake billing scam was carried out by holding transactions only on paper without any exchange of goods or services. The accused obtained GST numbers for the fake companies and allegedly started laundering money. The SGST department's raid on the fake firms exposed the entire racket.
The SGST department has been cracking down on tax evaders and fake billing scams in recent months. This latest development is a significant breakthrough in their ongoing efforts to ensure compliance and transparency in the taxation system.
