CHENNAI: Directorate General of GST Intelligence (DGGI), Chennai Zonal Unit has busted a major fake Input Tax Credit (ITC) racket comprising 59 companies and passing on ITC to the tune of Rs 175.88 crore for a taxable value of Rs 973.64 crore.
The mastermind, a 34-year-old resident from Chepauk was nabbed at the Bengaluru airport during his attempt to flee the country and subsequently arrested on Sunday. His accomplice, a 35-year-old resident from Perambur, was arrested on June 22, this year.
It came to light that the fraudsters were using advanced technology including remote access software, foreign SIM cards, exclusive phones with contacts stored as aliases to carry out the bill trading activity. PAN and Aadhar credentials of persons from lower income group were taken in the guise of availing loans, and fictious companies were created in their names.
However, the officers of DGGI busted this racket based on intelligence developed using sophisticated analytical tools like IP address tracking, simultaneous searches at multiple locations including mastermind's residence & office premises, location of other key members & intermediaries involved and analysis of cryptic WhatsApp chats. Corroborative evidences including mobile phones, modem, laptop, SIM cards used to run this racket have been seized. 25 bank accounts have been freezed, 20 GST registrations have been cancelled and further investigation is under progress.