The Mumbai Zonal Unit of the Directorate General of GST Intelligence (DGGI-MZU) on Tuesday (17th September) made an arrest for one Shri Sandeep alias Karan Arora, Managing Director of M/s High Ground Enterprises Ltd.; on charges of having availed & utilized, as well as having passed on fictitious lnput Tax Credit (ITC) by way of issuance of invoices without actual receipt or supply of goods or services.
The press note issued by Joint Director, DGGI-MZU, Smt Ujjwala Bhagwat in this regard states that - it is apparent, from the investigation conducted till date, that M/s High Ground Enterprises Ltd. has availed fake ITC to the tune of approximately Rs 77 Crores, on the basis of invoices having value of approximately Rs. 420 crores. During the course of the investigation, it was ascertained that several of the entities from whom M/s High Ground Enterprises Ltd. has availed invoices are actually shell companies having no capacity to conduct any business operations. Some of the entities from whom M/s High Ground Enterprises Ltd. has availed fake ITU were in existence, but it was ascertained that these entities have merely supplied invoices & other documents without actual supply of goods or services.
The investigation spanned multiple locations in various parts of the country including New Delhi, Kolkata, Hyderabad, Bangalore, Pune, etc. Based on the extensive documentary evidence available, and the statements recorded of several individuals, it was ascertained that Shri. Sandeep alias Karan Arora, Managing Director of the M/s High Ground Enterprises Ltd. is the key mastermind behind this entire operation. Accordingly, Shri Sandeep alias Karan Arora was arrested and presented before the Hon’ble Addl. Chief Metropolitan Magistrate, who ordered a judicial remand.
It is noteworthy to mention that Shri. Sandeep alias Karan Arora is also wanted by the U.K. Govt. for allegedly committing VAT fraud amounting to GBP 4.5 million. In an appeal put out by the Joint Fraud Taskforce consisting of the City of London Police, Metropolitan Police Service & the British National Crime Agency, it has been stated that Shri. Sandeep alias Karan Arora is guilty of wrongly claiming VAT & Film Tax refunds on the basis of films that either did not exists, or which he had no involvement. During the course of the investigation, it has also emerged that Shri. Sandeep alias Karan is under the scanner of other investigative agencies such as the Enforcement Directorate & Income Tax Department.
Further investigation in the matter is under progess.
Source: Mumbai Zonal Unit of the Directorate General of GST Intelligence
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