Iron Scrap Trader Arrested in Rs 10 Crore GST Fraud Case

City-Based Trader Arrested in Rs 10 Crore GST Fraud: Directorate General GST Cracks Down on Elaborate Network

GST investigation wing, operating under the revenue department of the Ministry of Finance, has apprehended a city-based trader, Amit Agarwal alias Vicky Bhalotia, on charges of GST tax fraud exceeding Rs 10 crore. The arrest follows a meticulous four-day search at seven premises linked to Bhalotia, conducted by a team of GST officials. The trader, accused of input tax credit (ITC) fraud, was produced before a court and subsequently sent to jail, raising concerns over the potential expansion of the fraud investigation across multiple states.

Key Details

Magnitude of the Fraud

• The arrested trader, Amit Agarwal alias Vicky Bhalotia, is facing allegations of ITC fraud surpassing Rs 10 crore, making it a substantial case within the realm of GST tax evasion.

Expansive Business Network

• The investigation indicates that Bhalotia's business network extends across several states, including Bengal, Odisha, Tamil Nadu, Delhi, and Chhattisgarh. Authorities suggest that the total amount involved in ITC fraud might increase as the detailed probe unfolds.

Direction from Senior Officials

• The arrest was executed under the directives of senior officials from the Directorate General GST (investigating wing), Patna circle. This underscores the gravity of the case and the strategic approach taken by higher authorities to tackle GST fraud.

Four-Day Search Operation

• The arrest comes on the heels of an extensive four-day search conducted at seven premises linked to Bhalotia. The search operation, carried out by a team of GST officials, aimed to uncover evidence related to the alleged ITC fraud.

Lack of Cooperation During Interrogation

• During the search operation, GST officials reported that the trader, Amit Agarwal alias Vicky Bhalotia, did not cooperate with the investigative team and remained unresponsive throughout the interrogation process.

Network Associates

• Searches were also conducted at the premises of four associates connected to Bhalotia. However, as of now, no arrests have been made among these associates.

Conclusion

The arrest of Amit Agarwal alias Vicky Bhalotia in connection with a GST tax fraud exceeding Rs 10 crore signals the effective crackdown by the Directorate General GST (investigating wing). As the investigation unfolds, the expansive nature of the trader's business network raises questions about the prevalence of such fraud across multiple states. The lack of cooperation during the search operation adds a layer of complexity to the case, emphasizing the challenges faced by authorities in unveiling and addressing intricate instances of GST evasion.