Ambala: A case of GST scam has come to light in Ambala (Haryana) in which a single family formed four firms and committed GST fraud of amount worth Rs 54 crore. These four firms defrauded the government of crores by making purchases and sales only on paper. The GST Department has imposed a fine of Rs 102.85 crore on these firms. Information reveals that a total of 301 firms are under the scanner of the GST department registered at addresses in Ambala in which a single family made a fraud of Rs 54 crore by forming four firms. These include firms from Ambala Cantt and the city as well. Bank accounts of firms have been sealed, as well as the fines imposed on them. According to a spokesperson of the sales tax department, the bank accounts of the firms have been sealed, in which crores of rupees are lying.
These four firms include Satyam Enterprises, Khushi Enterprises, Shiva Traders, MM Traders. These firms were registered at the addresses of Ambala city, whose GST numbers have also been cancelled. In the preliminary investigation of the GST department, Satyam Enterprises director Mahinder Agarwal has given his reply to the department, in which he has admitted that he has taken input tax credit (ITC) fraudulently. Not only Mahinder but other members of his family are also involved in this game, in whose names firms were formed. A firm was formed in Ambala city in the name of MM Traders, whose director is Satyam Agarwal. After scrutinizing the records, the department recovered Rs 11 crore 67 lakh 14 thousand 566. Similarly, Rs 14 crore 03 lakh 76 thousand 498 was recovered from Khushi Agarwal of Khushi Enterprises.
A recovery of Rs 14 crore 63 lakh 54 thousand 914 was made from Satyam Enterprises director Mahindra Agarwal and Rs 14 crore 47 lakh 82 thousand 612 was made from Shiva Trading director Manju Agarwal. A total of Rs 54 crore 82 lakh 28 thousand 610 was recovered from the four firms. Some recovery has also been made from this. Investigations by the department revealed the firms were dealing in scientific and miscellaneous goods instruments, but buying and selling is in FMCG. When the GST department’s investigation progressed, the operators were also questioned. In this, Mahindra Agarwal admitted that this entire game was played through four firms. These firms were found dealing in motor vehicle parts, medical instruments, surgical, dental, veterinary science, petroleum oil, iron, steel tyre tubes, but apart from this they also bought and sold fast moving consumable goods (FMCG) and obtained ITC. The firms are not even registered in FMCG. Information also reveals that 869 firms are under suspicion in ITC’s game.
The GST department has given two big decisions regarding different firms that came under suspicion in Ambala district. In one decision, four mastermind firms cheated and earned crores of rupees worth of ITC, on which 100% recovery has not been done so far. A similar second decision has also come out, in which the names of 301 firms have come to light by the sales tax department conducting search operations and issued notices to all these firms and sought their replies. Fines have been imposed on them. Some of these firms have paid the fine, while few others have made appeals as told by an officer.
