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New Delhi : The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana, has arrested one Md. Shamshad Saifi, a resident of New Delhi, on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit (ITC) by way of issuance of invoices without any actual receipt or supply of goods or services.

It is apparent from the investigation conducted till date, that Md. Saifi created two companies by the name of M/s Techno Electrical and M/s Lata Sales based in New Delhi on the basis of bogus and forged documents in the name of non-existent persons at addresses not even pertaining to firms. M/s Techno passed on fraudulent ITC of Rs 98.09 crore to M/s Lata, which further generated fake ITC of Rs. 69.59 crore to various non-existent firms, according to a PIB release.

Md. Shamshad Saifi is also responsible for creating four more fake non-existent firms namely M/s Galaxy Enterprises, M/s Moon, M/s Sidharth Enterprises & M/s Sun Enterprises based in New Delhi. It was ascertained that all the above mentioned firms have only supplied invoices without actual supply of goods.

The investigation spanned multiple locations in Delhi and based on documentary evidence and statement recorded, it was ascertained that Md. Saifi is a key person in orchestrating this racket of making fake firms on forged documents. Accordingly, Md. Saifi was arrested on October 9, 2020, and produced before Addl. CJM, Gurugram, who ordered judicial custody. A total fake ITC of more than Rs 190 crore has been thus passed by the accused. Further investigations in the matter are under progress.