Noida Police Uncover Rs 14,999 Crore GST Fraud, Arrest 48 in Connection with 2,600 Shell Companies

A member of a gang that allegedly opened over 600 fake companies, causing a loss of more than Rs 15,000 crore to the Indian government, has been arrested in Odisha. The Noida Police had announced a reward of Rs 25,000 for the arrest of this individual. This marks the 48th arrest in the ongoing investigation by the Noida Police, and notably, none of the accused have been granted bail so far.

DCP Crime Shakti Mohan Awasthi stated that the arrested individual has been identified as Parmeshwar Nayak, a resident of Naupara, Odisha. Nayak is accused of fraudulently obtaining input tax credits using fake documents. Due to his prolonged evasion, a reward of Rs 25,000 was placed on his arrest. The police recovered several items from him, including letterheads of fake firms, rent agreements, Aadhaar cards, PAN cards, and other documents used to establish shell companies and claim input tax credits.

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Gangster charges have been invoked against 36 accused in this GST fraud case by the Noida Police. The police are now identifying and preparing to seize the movable and immovable assets of these accused individuals, with some assets already identified.

So far, 48 people have been arrested in connection with this case. Due to the effective prosecution by the Noida Police, none of the accused have been granted bail in the past year. Several accused have rewards announced on them.

There are suspicions that some of the accused have fled the country with their families, with reports suggesting they have taken refuge in places like Dubai. The Noida Police are preparing to issue open-dated warrants for their arrest. A Red Corner Notice has already been issued, and with the issuance of these warrants, the Noida Police may either pursue the arrests abroad or seek assistance from Interpol to apprehend the fugitives.

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The modus operandi involved the accused obtaining PAN and Aadhaar card data from people across the country and using this information to establish fake companies that existed only on paper. They then obtained GST numbers and issued fake bills to claim GST refunds, defrauding the government of crores of rupees. Investigations have revealed that the fraudsters even sold these fake companies with GST numbers on demand.

The money deposited in these companies was used to launder black money. Several suspects, including those with rewards on their heads, are still at large. The Noida Police have formed four teams to conduct raids at potential hideouts in Delhi, Uttar Pradesh, and other locations. Some of the assets of these accused have already been seized.

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