5 folks from Gujarat have been arrested in reference to an alleged Items and Companies Tax (GST) credit score fraud to the tune of Rs 700 crore, Madhya Pradesh police stated on Sunday.
The accused ran the faux GST enter tax credit score (ITC) racket by making a community of round 500 bogus companies utilizing cast paperwork, addresses and pretend identities.
They generated and handed on enter tax credit score of greater than Rs 700 crore by issuing faux invoices by the bogus companies, officers stated.
A joint investigation by the Central GST Commissionerate in Indore and the Madhya Pradesh Police’s cyber cell revealed that the accused routed the transactions by digital pockets accounts linked to totally different cell numbers.
“The accused have been routing the transactions by a number of digital pockets accounts to keep away from typical banking channels,” stated Cyber Cell Indore’s unit inspector Rashid Khan.
They have been arrested from Surat in Gujarat on Might 25. Whereas the important thing operator and his shut affiliate are being grilled by the CGST Indore Commissionerate officers, the three others are being quizzed by the cyber cell’s cops in Indore.
Officers have seized cellphones, SIM playing cards, paperwork, seals, and letter pads pertaining to the faux companies from the premises linked to the accused in Surat throughout the search operation.
“All of the accused are faculty dropouts aged between 25-35 years,” Mr Khan stated.