The Directorate General of GST Intelligence (DGGI), Jaipur Zonal Unit, has busted a significant crime syndicate with headquarters in Delhi as part of its ongoing campaign against organisations that run and manage fictitious businesses.
This network ran 569 false businesses, and through them, it generated massive amounts of bogus ITC totaling Rs. 1,047 crore. In order to run these fictitious businesses, the mastermind Shri Rishabh Jain, a 30-year-old Delhi native, employed 10 people. The employees of DGGI, Jaipur, were able to track down this mastermind in Delhi and apprehend him after conducting a thorough reconnaissance and data analytics.
The syndicate’s mode of operation suggests that it has a tight relationship with several brokers via whom it may buy companies, bank accounts, SIM cards, manage RTGS/cash transfers, and mediate between them and beneficiary firms.
There are brokers and agents that specialised in registering businesses on the GSTN using the identities of the poor, the needy, and the vulnerable, then selling the registered businesses to syndicates who then used them to create fictitious invoices. Through these 569 fictitious companies, this gang has sent invoices totaling Rs. 6,022 crore in taxable revenue and Rs. 1,047 crore in ITC to more than 2,000 beneficiary firms. With presence in 13 other states, including Rajasthan, Uttar Pradesh, Punjab, Bihar, Jharkhand, Gujarat, Maharashtra, Haryana, West Bengal, Karnataka, Goa, Assam, and Uttarakhand, Delhi is where the majority of the fraudulent businesses are based. 73 bank accounts that the syndicate and brokers were using have so far been linked.
Shri Rishabh Jain was detained on June 25, 2023, and he was brought beforethe Economic Offence Court in Jaipur.He is currently being held in judicial custody until July 7, 2023. Due to the fact that during the most recent Financial Year (2022-23) 142 instances involving fraudulent ITC totaling Rs. 1,327 crore were registered and 9 people were arrested, the DGGI, Jaipur Zonal Unit has been at the forefront in Rajasthan in discovering bogus ITC cases. In this F.Y. (2023-24), 5 false ITC cases totaling Rs. 1,531 crore have been filed, and 5 masterminds have been apprehended. This unit is committed to taking all preventative measures to identify further syndicates like these and their leaders who are endangering the administration of the GST by producing phoney invoices.
