DGGI (HQs) arrests two persons in cases of fraudulent IGST refund claims

Speed Post News Network

New Delhi : Two persons were arrested on August 16, 2019, by the Directorate General of GST Intelligence (HQs) in cases of fraudulent IGST refund claims here.

As per the statement of the DGGI (HQs), the action was taken on receipt of an input from Allahabad Bank, Paschim Vihar, New Delhi, that suspicious transactions were noticed in the accounts of 4 proprietorship firms (Monal Enterprises & Ors.) wherein large quantum of IGST refunds had been received by them immediately after their opening, without any prior business transaction history. Further, the refunds credited to these bank accounts were withdrawn/transferred in quick succession. Developing on the input, DGGI (HQs) verified that the addresses of these firms were either non-existent or the firms were not operating at the given addresses.

Further investigations revealed that the said 4 firms were in the names of benami individuals whose identification documents had been fraudulently obtained for the opening of these bank accounts and to obtain GST registrations. It was further revealed that the said 4 firms had no corresponding purchases against the exports claimed to have been made by them, nor had any export proceeds been realised. E-way bill data also revealed that corresponding movement of goods did not exist.

Investigations further revealed that Ramesh Wadhera the alleged mastermind who controlled these fake firms and operated them with the connivance and active involvement of  Mukesh Kumar who fraudulently obtained identification documents used in this racket from gullible employment seekers. It was further found that 10 more similar fake/fraudulent firms are being operated by the said two individuals.

The total fraudulent IGST refund availed by these 14 firms amounts to about Rs 44 crore. Searches were conducted at several premises from August 13 to 15, 2019. Ramesh Wadhera and Mukesh Kumar have been arrested under the provisions of Section 67 of the CGST Act, read with Section 20 of the IGST Act, 2017, for their active role in defrauding the Exchequer by claiming fraudulent IGST refunds. Ramesh Wadhera is learnt to have several old cases of DRI/Customs against him, according to a PIB release.