Karnataka Authorities Uncover ₹410 Crore GST Fraud, Arrest One Suspect
Karnataka: Commercial Taxes Dept busts ₹410 crore GST fraud network, arrests one
Hindustan Times
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The Commercial Taxes Department in Bengaluru has arrested Mohammed Tauqeer for his involvement in a ₹410 crore Goods and Services Tax (GST) fraud network. The operation involved generating fraudulent Input Tax Credit (ITC) through bogus firms across Karnataka, Andhra Pradesh, and Tamil Nadu, leading to significant losses for the government.
- 01Arrest of Mohammed Tauqeer for orchestrating a ₹410 crore GST fraud.
- 02Fraudulent Input Tax Credit (ITC) transactions facilitated through bogus firms.
- 03Involvement of accomplice Shaik Jakeer Hussain, who remains absconding.
- 04The fraud network operated across multiple states, including Karnataka, Andhra Pradesh, and Tamil Nadu.
- 05The investigation revealed a sophisticated method of evading detection through frequent changes in business registrations.
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The Commercial Taxes Department in Bengaluru, Karnataka, has arrested Mohammed Tauqeer for his role in a fraudulent network that generated and routed ₹410 crore in Goods and Services Tax (GST) fraud. The department's Enforcement Wing apprehended Tauqeer as he attempted to flee, and he was subsequently remanded to judicial custody for 14 days by the Special Court for Economic Offences. Alongside Tauqeer, his accomplice, Shaik Jakeer Hussain, also known as Basha, is identified as a key figure in the scheme but remains at large. The duo created multiple bogus business entities and issued fake tax invoices without actual goods being supplied, allowing them to pass fraudulent Input Tax Credit (ITC) to various entities across Karnataka, Andhra Pradesh, and Tamil Nadu. This scheme enabled beneficiaries to offset tax liabilities using ineligible ITC, resulting in significant losses to the government. The investigation indicates a well-structured operation with frequent changes in GST registrations and bank accounts to evade detection.
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The fraud has resulted in significant financial losses to the government, impacting public funds that could have been utilized for development and welfare.
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