GST Input Tax Credit Fraud: After Kingpin, Two More Arrested In ₹134 Crore Scam

Bhopal (Madhya Pradesh): The Economic Offences Wing (EOW) has arrested two more accused allegedly involved in the ₹134 crore GST input tax credit (ITC) scam, said officials here on Thursday.

While one of them was arrested in Anuppur, the other was nabbed from Bhopal; the alleged kingpin, N.K. Khare, aka Vinod Sahay, was arrested earlier. Fake invoices of ₹520 crore have been unearthed.

DG, EOW, Upendra Jain said that the agency busted an interstate racket involved in fraudulent ITC claims against nine operational firms and four shell companies. The scam is not limited to MP, and extends to Chhattisgarh and Maharashtra also.

Sheikh Zafar, who was arrested in Anuppur, was allegedly instructed by Vinod Sahay to create two firms, Ambar Coal Depot and Anam Traders, he said. These companies, only on paper, were shown to have done business with three other firms, Maa Rewa Traders, Namami Traders, and Abhijeet Traders.

Without actually supplying any coal, the firms allegedly generated fake ITC claims by preparing fake challan numbers, truck numbers, e-way bills, weight slips, and other documents.

Likewise, the other arrested accused, Raja Shekh of Bhopal, runs Mehak Enterprises involved in cement supply. While he did a business of ₹6 crore, he got ITC of ₹1.20 crore.