Authorities in Delhi have uncovered a ₹14 crore scam involving fraudulent Goods and Services Tax (GST) refund claims. One individual has been arrested for allegedly submitting fake documents through multiple shell companies to fraudulently obtain tax refunds.
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Scam Involved Shell Companies and Forged Invoices
The accused, whose identity has not been publicly disclosed, was allegedly operating a network of fictitious firms to claim GST refunds through bogus Input Tax Credit (ITC) invoices. According to the investigation, the fraudulent claims were made using counterfeit documents such as fake purchase invoices, manipulated bank statements, and falsified transport records.
Officials from the Delhi GST Department confirmed that the scam came to light during a routine audit of suspicious refund applications. Upon closer examination, several discrepancies were noted in the documentation submitted for refund claims. The probe revealed that no genuine business activity was conducted by the firms in question, and the transactions were merely on paper.
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Arrest Made After Investigation and Evidence Review
Following the detection of anomalies, a detailed investigation was launched. The accused was taken into custody after officials gathered sufficient evidence indicating his involvement in orchestrating the scam. The suspect is being interrogated to identify other individuals potentially involved in the scheme and to determine the full extent of the fraud.
Authorities have also initiated the process of freezing the bank accounts linked to the shell companies. Efforts are underway to recover the fraudulently claimed amount and prevent any future disbursements related to these entities.
The Delhi GST Department emphasized that strict action will be taken against those who misuse the refund mechanism. Enhanced verification protocols and digital tracking systems are being employed to curb the rising number of such scams.
About the Author – Anirudh Mittal is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.