Authorities in Ahmedabad have arrested four accused in the state-wide bogus Input Tax Credit (ITC), and the probe is still on.

A firm named Dhruvi Enterprise is found to be at the centre of the whole tax evasion scheme.

The accused in the case have been granted a 10-day remand, and an investigation into the financial transactions is expected to reveal more details.

During inquiry in the case, it was found that after acquiring the GST number for Dhruvi Enterprises, registrations were obtained for another 13 companies. 

These companies include Om Construction Company, Kankeshwari Enterprises, Raj Infra, Haresh Construction Company, D A Enterprises, Ethiraj Construction, B J Odedera, R M Dasa Infrastructure, Aryan Associates, Prithvi Builders, and  Paresh Dodiya. Through these 14 companies, multiple financial transactions were shown to claim input tax credit.

Samad Jainmiya Kadri bought a fake company operating under the name Dhruvi Enterprises for ₹2 lakh and sold it to another party. At the time of questioning, Samad Kadri stated that he had purchased another 15 to 20 companies between 2022 and 23. He bought these companies from Firoz Khan alias Pintu. Ejaz Maldar and Adil Khokhar sold Dhruvi Enterprises to Salma Hamdani.

In the case of D A Enterprises, three financial transactions of ₹17 lakh, ₹6.50 lakh, and ₹14.75 lakh were conducted through its HDFC Bank account. Additionally, a transaction of ₹42.50 lakh was also noted. Similar large-scale financial transactions have been observed from the accounts of Haresh Construction Company as well.

How did Dhruvi Enterprise execute the scam?

The scam reportedly occurred between February 2023 and the end of April 2023. The Directorate General of GST Intelligence (DGGI) lodged a formal complaint, initiating the investigation.

One of the key culprits, Dhruvi Enterprise, was found to have fabricated rent agreements and submitted them to DGGI to fraudulently claim input tax credit.

The company also issued fake bills to facilitate bogus ITC claims for other entities. It was discovered that multiple GST registrations were obtained using the same PAN card across different locations.

Dhruvi Enterprise provided ITC to 12 companies, while it also claimed credit from companies whose GST registrations had already been cancelled.

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