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Home / News / India /  DGGI arrests Delhi man for input tax credit fraud of over 43 crore

The Directorate General of GST Intelligence (DGGI) in Gurugram arrested a man from Delhi on Tuesday for creating and running fictitious firms to avail Input Tax Credit on bogus Invoices.

The accused, Ravinder Kumar (aka Ravinder Garg), had created the firms on forged documents and was enjoying the credit without actual receipt and supply of goods or services.

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"It is apparent from the investigation conducted till date, that Ravinder Kumar created multiple proprietorship, partnership firms and private limited companies based in Haryana, New Delhi and Jharkhand merely on paper. Ravinder kept eluding the investigation and did not appear before the investigating authorities even after the issuance of summons on multiple occasions," said the ministry of finance.

It added that Ravinder was absconding and kept changing his locations.

"The officers kept watch on his frequent places and after a long period of monitoring and active surveillance, were able to nab him. He admitted to have created two Private Limited Companies, one partnership firm and multiple proprietorship firms which have generated sham invoices without goods amounting to 237.98 crore and passed on fake ITC amounting to more than 43 crore," the ministry added.

The ministry has concluded that Ravinder is the key person in orchestrating this racket of creating fake firms on forged documents.

After his arrest, he was produced before the Metropolitan Magistrate, New Delhi, who ordered 14 days of judicial custody.

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