LUDHIANA: In a big action against anti evasion, Ludhiana Zonal unit of Directorate General of GST Intelligence (DGGI) has unearthed a bogus billing network involving circular trading of Rs 630 crore which was being run in the city.
The operation had been going on for two days now and on Wednesday DGGI also arrested a prominent city businessman into timber and plywood business for his alleged involvement into this nexus which was being run by using 15 firms, 12 of which have been found non existent.
The accused has sent to judicial remand till July 7th 2021 after he was produced in the court today.
Giving more information about the case a highly placed source in the department said “Based upon intelligence gathered, simultaneous search at 16 premises was conducted by different teams of 35 DGGI officials one led by additional director Rituraj Gupta and other by joint director Daljit Kaur.
During the investigation it was found that fifteen firms were involved in the misdeed of circular trading and the supply which started from three firms were returned back to them after routing the same through the twelve dummy and non existent firms.
These twelve firms were found to be shown operating from different non-existent addresses with dummy proprietors who were either current or ex employees of three firms owned by Barinder Singh and his family, while the entire operations and bank accounts were actually being managed by him” Source also added, “As being partner and operator of three firms Singh, a key person responsible for collecting and using the documents of other persons for floating fictitious firms and has been found involved in bogus outward supplies of Rs 600 crore approximately involving Input Tax Credit (ITC) of Rs.94 crore and bogus inward supplies of Rs 630 crore involving ITC of Rs 98 crore.
He was found to be operating and managing twelve fictitious firms for issuing fake invoices for availing and passing inadmissible Input tax credit without supply of goods by undertaking circular trading.
Three trading firms of timber and plywood were found to be engaged in making outward supplies to six firms and thereafter these firms were making outward supplies to other six firms which returned the same goods back to these three firms” Source also informed that recovery of incriminating evidences including electronic and IT devices from the residential and business premise of Singh during the search revealed his involvement in creating and managing these dummy firms.
Various suppliers and buyers of these trading firms are under the radar of the department.
Further investigation is under process.