A 40-year-old exporter, Santosh Kumar Singh, has been arrested for masterminding a large-scale fraud. He allegedly created 44 fake companies, run by unsuspecting employees, to issue bogus invoices. These were used by his nine export companies to fraudulently claim over £16 million in Input Tax Credit (ITC) refunds and drawback, despite no goods actually being supplied. Singh was remanded to judicial custody following his arrest.
On the basis of inputs received from PCCO by using BIFA tool and intelligence further developed by the officers of CGST Mumbai West Anti Evasion team, a case was booked on nine (9) companies run by a 40 year old exporter Shri Santosh Kumar Singh. He has been operating nine export companies and 44 fake ITC issuing companies with the objective of claiming fraudulent refund of ITC and Drawback. All the companies were created in the name of office boys/ peons who were not even aware of the activitie
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to
CCI PRO
for unlimited access
Why Upgrade to
CCI PRO?
-
No Ads
-
WhatsApp Community
-
Daily E-Newsletter
-
Unlimited News Access
-
Profile Visitors
-
Link Social Profiles
-
Featured Job Posts
-
Pro Badge
-
Expert GST Guidance
-
Unlimited Forum Replies
-
Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
View all CCI PRO benefits
Already a PRO member?
Login here
for an ad-free experience. 011-411-70713
FAQ :
The exporter, Santosh Kumar Singh, was arrested for creating bogus companies to issue fake invoices and fraudulently claim Input Tax Credit (ITC) refunds and drawback.
The exporter fraudulently claimed ITC refunds totalling Rs. 12.08 crores (£12 million approx) and drawback amounting to Rs. 4.22 crores (£4.2 million approx), making a total of approximately £16.28 million.
He set up 44 fake companies in the names of office boys and peons, who were unaware of the operations. These companies issued fake invoices to his nine export companies, which then used these to claim refunds without any actual goods being traded.
Santosh Kumar Singh was arrested on Monday, January 11, 2021, and remanded to judicial custody until January 25, 2021. Further investigations are ongoing.
No, the companies were created in the names of office boys and peons who were not aware of the companies' activities.