The involvement of Aryan Associates, a company owned by Ajay Barad, son of Talala BJP MLA Bhaga Barad, has been embroiled in controversy over input tax credit scam.

This comes amid a crackdown by the CID Crime, Economic Offences Wing, and Special Operations Group, which has led to the arrest of four individuals tied to the scheme.

The operation revealed that several companies, including Aryan Associates, are implicated in claiming fraudulent input tax credits totaling approximately ₹12 crores. 

Authorities conducted raids across multiple locations, including Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar, resulting in the detention of, including Ejaz Maldar and Abdul Kadri from Dhruvi Enterprises at the center of the scandal.

One promoter from D A Enterprises, senior citizen Manharbhai, claims he has no knowledge of this company or its operations, and the owners include Manojkumar, Rambhai Vinibhai, and Natubhai Patel. One of them has been replaced by a woman on the board.

While the police are questioning the chartered accountant of the company, Jigar Shah, he has stated that he acted according to the instructions given by the promoters. 

There are expectations that the old chartered accountant, Avtar Singh, will also be questioned. 

It appears that all decisions were made at the direction of the main promoters. CID Crime officials are currently compiling data on about 186 bogus companies.

This 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 canceled.

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Bogus input tax credit scam uncovered in Gujarat, raids conducted at 14 locations