Thane CGST & CX Commissionerate uncovers fake ITC scam worth Rs 34.74 crore, arrests three main accused

Mumbai: The Thane CGST & CX Commissionerate, one of the Commissionerates within the Mumbai CGST & CX Zone, has busted a huge Input Tax Credit (ITC) fraud case. The operation involved 19 fictitious companies, which together passed on fraudulent Input Tax Credits worth Rs 34.74 crore.

During the subsequent operation by the police department, incriminating documents were seized, including fake invoices, checkbooks, laptops, USB sticks and other items containing detailed information about the front companies involved.

Investigations have revealed that the plot was hatched by Bhaven Kachiya Patel and his accomplices Dilip Bhatt and Hardik Shah. The trio played a crucial role in recruiting individuals by offering them financial incentives in exchange for their identity documents including AADHAR cards, PAN cards and other KYC documents. These were used to make GST registrations in the name of individuals such as owners or directors and to open bank accounts in the name of these firms.

The accused set up 19 shell companies and thereby facilitated the fraudulent acquisition of ITC worth around Rs 4,066 million, of which Rs 3,474 million was successfully diverted.

The three accused were arrested on Friday and produced before the Chief Judicial Magistrate (CJM) in Thane. The magistrate has remanded them in judicial custody for 14 days, till September 13, 2024. Further investigation in the matter is underway.