Crime
GST Scam: Key Arrest in Punjab’s Rs 200 Crore Fake Billing Operation, Jalandhar Scrap Links
LUDHIANA : A massive GST bogus billing scam has been uncovered in Punjab. The Directorate General of GST Intelligence (DGGI) Zonal Office in Ludhiana has taken decisive action against those involved in fraudulent billing activities. The mastermind behind this operation, Satveer Singh Sekhon, has been arrested for orchestrating fake billing worth Rs 200.05 crore through firms like M/s Batala Metal Industries, HS Steel Industries, and Citizen Industries, managing to secure a fraudulent refund of Rs 30.52 crore without dispatching any goods.
Fake Firms and Bogus Transactions
According to sources, M/s Batala Metal Industries was presented as a legitimate business dealing in MS scrap, HR coils, and ERW pipes. However, the company turned out to be a front for a fraudulent operation, causing significant losses to the government. The investigation has revealed connections to several large scrap dealers in Jalandhar, particularly those operating near the 120-Foot Road, who are also implicated in the scam.
Firms Opened in the Names of Wife and Driver
Authorities seized incriminating evidence from Satveer Singh Sekhon’s residence and official premises, including a CPU, invoices, checkbooks, account passbooks, and diaries. It was discovered that Sekhon was a partner in one firm and had opened two other firms in the names of his wife and driver. Through these dummy entities, Sekhon masterminded the fraudulent GST billing, violating the provisions of the CGST Act, 2017. He fraudulently claimed Rs 30.52 crore in refunds without dispatching any goods. He has been arrested and is currently on judicial remand.
ALSO READ: GST Fraud: How Scammers Floated Over 650 Shell Companies To Evade Tax Of Rs 1915 Crore
Identification of Dummy Entities Ongoing
Officials from the DGGI Ludhiana confirmed that their team is actively identifying other dummy entities involved in similar bogus billing schemes. The agency has urged the public to report any instances of tax evasion or fraud to its office.
Satveer Singh Sekhon’s connections to scrap dealers in Jalandhar, including direct transactions on the 120-Foot Road, have also come to light. Multiple trucks carrying scrap without proper invoices or using fake bills have been dispatched from Jalandhar to locations like Mandi Gobindgarh and beyond, leading to significant revenue losses for both the state and central governments.
Follow The420.in on
Telegram, Facebook, Twitter, LinkedIn, Instagram and YouTube