Officials of DGGI, Jaipur, bust syndicate operating in 14 States through 569 fake firms fraudulently claiming ITC of Rs 1,047 crore, 1 held

In continuing drive against syndicates operating and managing fake firms, Directorate General of GST Intelligence (DGGI), Jaipur Zonal Unit, has busted a major crime syndicate based in Delhi. 

This syndicate was operating 569 fake firms and through them created huge fraudulent ITC of Rs 1,047 crore. The mastermind Shri Rishabh Jain, aged 30, resident of Delhi, had hired 10 employees for operating these fake firms. After extensive recce and data analytics, the officials of DGGI, Jaipur were able to trace this mastermind in Delhi and nabbed him.

The modus operandi indicates that the syndicate has a close nexus with various brokers to purchase firms, bank accounts, SIM Cards, to manage their RTGS/cash transfers and mediate between them and beneficiary firms. There are brokers/agents specialise in registering firms on GSTN using IDs of poor, needy and susceptible people and sell these registered firms to syndicates, who further issue fake invoices through them. This syndicate has issued invoices having taxable turnover of Rs. 6,022 crore involving ITC of Rs. 1,047 crore through these 569 fake firms to more than 2,000 beneficiary firms. Majority of the fake firms are located in Delhi with presence in 13 other states of Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam and Uttarakhand. So far, 73 bank accounts used by syndicate and brokers have been attached.

Shri Rishabh Jain has been arrested on 25.06.2023 and produced before Economic Offence Court, Jaipur, and is remanded for judicial custody till 07.07.2023.

DGGI, Jaipur Zonal Unit has been in forefront in Rajasthan in detecting fake ITC cases, as during last F.Y. (2022-23), 142 cases involving fake ITC of Rs. 1,327 crore were booked, in which 9 persons were arrested. In this F.Y. (2023-24) in a short span of less than 3 months, 5 fake ITC cases involving Rs. 1,531 crore have been booked with arrest of 5 masterminds. This unit is dedicated to take all preventive steps to find more such syndicates and their masterminds, who are jeopardising administration of GST by issuing fake bills. This unit had succeeded in cracking 2 big syndicates within last seven days. Last week also, two masterminds were arrested from Jaipur on 19.06.2023 for running a fake ITC syndicate of Rs. 320 crore. Follow up action is being taken for realising government revenue.