Pune Crime News: Major ₹8,000 Crore GST Fraud Exposed

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Major ₹8,000 Crore GST Fraud Scheme Uncovered in Pune, Leading to Multiple Arrests

A significant Goods and Services Tax (GST) fraud scheme, amounting to nearly ₹8,000 crore, has been uncovered in Pune, involving an extensive network of 246 fake companies. The operation, primarily orchestrated from Gujarat, has prompted authorities to take action against eight individuals, including the mastermind behind the scam.

The Fraud Scheme and Its Operations

The fraudulent operation spanned from September 2018 to March 2024, with investigations revealing a complex network of fake companies involved in the creation of counterfeit documents and the misappropriation of funds from businesses that owed taxes. These entities were allegedly involved in generating fake invoices to evade GST payments, which were then used to claim undue refunds, causing massive financial losses to the government.

The investigation was launched in October 2023, when the accounts of a company named Pathan Enterprises were audited online. The audit revealed that the company’s transactions were entirely fabricated, with no legitimate business activity. The registered office of Pathan Enterprises was traced to a fictitious address in Shewalewadi, Hadapsar, which raised suspicions about the company’s operations.

Key Individuals Involved

The operation has been traced back to Ashrafbhai Ibrahimbhai Kalwadia, a resident of Mumbai, who is considered the main architect of the fraud. Several other individuals, including Nitin Bhagoji Berge, Faisal Abdul Ghaffar Mewawala, Amit Tejbahaddur Singh (all from Mumbai), Nizamuddin Mohammad Saeed Khan (from Bhiwandi), and others, have been implicated in the fraudulent activities. These individuals are accused of being key players in establishing and running fake companies that were used to manipulate GST filings.

Uncovering the Network

As the investigation progressed, it became clear that the fraud was far-reaching, with multiple fake companies operating under false pretenses. One of the most striking revelations was the discovery of Shabbir Khan Anwar Khan, a rickshaw puller, who was linked to the Pathan Enterprises but claimed to have no knowledge of the company’s activities. His name was used to establish fake business entities, further complicating the case.

The investigation also uncovered a mobile number and email address that were used across various establishments, all of which were registered with the GST under fraudulent conditions. Additionally, a bank account, tied to the name of Jit Kukdia, a security guard, was found to be used for routing the fraudulent transactions. It was revealed that acquaintances involved in the scheme had opened this account to facilitate the illegal dealings.

Legal Actions and Arrests

Based on these findings, the Pune GST office filed a complaint with the Koregaon Park police station, which led to the arrest of Ashrafbhai Kalwadia, the mastermind behind the scam. He has been remanded to judicial custody for 14 days. The investigation is ongoing, led by Senior Police Inspector Runal Mulla, who is working closely with the Pune GST office to identify and apprehend other individuals involved in the network.

Impact of the Scheme

The fraud has caused substantial financial losses, both to the government and legitimate businesses, due to the widespread use of fake invoices and fraudulent tax filings. The network of fake companies was sophisticated, using real individuals as front names and addresses to hide their illegal activities. The ongoing investigation is expected to reveal more details about the scale of the scam and the people who benefited from these fraudulent operations.

This case highlights the vulnerability of the GST system to manipulation and underscores the importance of stricter audits and enhanced oversight to prevent such large-scale frauds. The authorities are also considering further measures to strengthen the GST compliance system to safeguard against similar schemes in the future.

As the investigation continues, further arrests are expected, and the authorities are working to unravel the full extent of the fraud, which is one of the largest cases of GST evasion uncovered in recent years.

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