Tax fraud: Delhi man held on charges of forging ₹392-cr input tax credit

A man residing in the national capital was arrested by a team of Directorate General of GST Intelligence's (DGGI) Gurugram Zonal Unit on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit totalling over ₹392 crore through issuance of invoices without actual receipts or supply of goods or services.

Accused Kabir Kumar created multiple proprietary firms on paper that were shown as based in Gurugram, Delhi, Faridabad, Solan, Noida, Jhajjhar, Sirsa, etc, revealed DGGI probe.

Kabir Kumar tried to flee the city but was prevented from doing so at the IGI Airport by DGGI officials with support from the Customs and CISF officials, a Finance Ministry statement said.

During questioning, he admitted to the creation of 31 fictitious companies that had generated bogus invoices amounting to ₹2,993.86 crore and input tax credit totalling ₹392.37 crore, the statement added.

Laptop, cell phones, 140 SIM cards seized

A laptop, mobile phones and 140 SIM cards were seized from his person.

Investigations at multiple locations in Delhi and based on documentary evidence and recorded statement, it was established that Kabir was the key person in orchestrating this racket of making fake firms on forged documents, the DGGI said.

Kabir, who was arrested on Thursday, was sent in judicial custody by a Duty Magistrate in the national capital.

Further investigations in the matter are still underway.

With agency inputs