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The Surat Economic Crimes (EO) wing on Thursday arrested one of the key conspirators behind the alleged Input Tax Credit (ITC) scam involving bogus transactions worth Rs 900 crore.
Sufiyan Kapadia, a Surat resident who was evading the police, was arrested from Adajan district by Surat EO.
During investigations, officials found that Kapadia and Dharmesh Gandhi tax consultant in Ahmedabad had formed nearly 100 bogus companies and showed insider transactions of Rs 900 crore between them to benefit from ITC under GST.
Sufyan Kapadia and Dharmesh Gandhi were linked to the gang that was arrested earlier. Kapadia was involved in creating fake documents for business transactions between 100 companies internally. It was Kapadia who was guiding Gandhi to pass ITC to different companies. “Gandhi is a tax consultant operating from Ahmedabad who is involved in filing IT and GST returns for various clients,” said Surat EO Cell Assistant Commissioner of Police VK Parmar.
According to sources, Gandhi is bedridden, paralyzed and working from his home in Ahmedabad.
We have prepared our investigation reports and sent them to the GST officials. We have also reported this scam to Enforcement Department (ED) officials. The GST officials will investigate how much ITC was illegally utilized and sent to different companies.”
A fraud complaint was registered at the Surat Crime Branch on October 19 last year against a group of persons involved in setting up bogus companies on the basis of forged documents. They took advantage of the input tax credit from the government by showing fake transactions between fake companies.
The Surat EO cell has so far arrested 18 people from different parts of the state for their alleged involvement in setting up 1,500 bogus companies offering business worth Rs 2,700 crore to get ITC. While 1,300 of the 1,500 companies are from different parts of Gujarat, the rest are from 15 different states.
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