Haryana police recovered over Rs 112 crore from four major gangs allegedly involved in Goods and Services Tax (GST) scams. At least 89 people were arrested in these cases in 10 districts across the state. As many as 40 cases were registered with 89 arrests from four accused gangs (group of firms) allegedly defrauded the government exchequer to the tune of over Rs 464.12 crore through fraudulent means in the state. The nexus of these fraudsters were active not only in Haryana but across the country, the Haryana police said. Then Director General of Police, Haryana said that these persons issued fraudulent invoices to numerous firms and companies without actual supply of goods through fraudulent E-way bills (GST related challans for transporting consignments) and facilitated fake ITC entitlement on GST portal through GSTR-3B form. The major goods involved in these GST invoice scams were scrap, iron and steel articles, cotton-yarn and paper and recovery of Rs 112 crore by unearthing fake GST Identification Numbers.
Giving details about their modus operandi, police said, the maximum number of E-way bills which were generated by these fraudsters were found to be fake on verification by the Sales Tax and Crime branch. These E-way bills mentioned vehicle numbers related to ambulances, government vehicles, motorcycles, private owned vehicles which are contrary to be used for commercial purposes. Further inquiry revealed that the bank account numbers which were shown in GST registration form of the bogus firm were also found dubious and the fraudsters used another fake bank account to deceive concerned government authorities. The probe also revealed that the fraudenters had established these non-existent firms on forged documents like rent agreements, electricity bill, PAN cards. GST related challans for transporting consignments, and facilitated fake Income Tax Credit (ITC} entitlement on GST portal through GSTR-3B form. According to police information the maximum number of E-way bills which were generated by these fraudsters were found to be fake on verification by Crime branch also when a total of 21 FIRs against fake firms belonging to a gang from Panipat and adjoining areas were lodged in 2019.
Informatio9n reveals, Haryana government refused VAT scam of value Rs 10,618 crore when ED demanded investigation. Information also reveals that out of total number of 74 FIRs cancellation report of seven cases were submitted by the department and 20 cases were challaned. In this case Lokayukat had ordered an investigation by a Special Investigation Team. Advocate Pradeep Rapria during hearing in the case expressed that reply by the state government seems to be doubtful because officers of Haryana government has admitted GST frauds since after 2004 with recovery of amount worth over Rs 2000 crore which was also confirmed by the committee constituted for investigation in the case which confirmed frauds worth Rs 10000 crore in ita report including frauds by large number of builders too.
It is assumed that the hearing in this case under trial in the court of Justice Alok Jain and Ritu Bahri has now requested the Justice to shift this case to some other court for hearing in the case due to some reasons suspecting that the government perhaps wants to save a few influential persons involved in this case.
