DGGI Gurugram arrests man for fraudulently availing input tax credit of Rs 376 crore through 7 fake firms
New Delhi, February 12, 2021
The Directorate General of GST Intelligence (DGGI), Gurugram Zonal Unit (GZU), Haryana, has arrested Ritesh Aggarwal, a resident of Bahadurgarh, Haryana on charges of allegedly passing and availing fake input tax credit (ITC) while operating dummy, fake and non-existent firms and encashing this unduly availed ITC through IGST refund mode by showing export of cigarettes.
An official press release said Aggarwal, the proprietor of SR Impex, was found to be the de-facto controller of another firm, SR International. In the supply chain of these firms were found to be six other dummy firms by the names of Joles Trading Co, AS Traders, AR Traders, Om Traders, Capital India & S. M enterprises, all controlled by Agarwal, the release said.
In all these firms, he had availed and passed on ITC of Rs 376 crore through billing without goods. He got a refund of Rs 37.13 crore from the department.
Ritesh Aggarwal was found to be a habitual offender. In an earlier case, a Show Cause Notice for the demand of Rs 26.53 crore was issued to him for similar modus operandi of operating fake firm, SS & Co. and availing and passing on fake ITC.
Aggarwal, who also adopts the alias of Ravi Gupta, was found to be accused in the Show Cause Notice dated 01.03.2019 issued by the DGRI wherein fraudulent drawback was availed on imported areca nuts by forging the Certificate of Origins.
The investigation spanned multiple locations in Delhi and Haryana and based on documentary evidence and statement recorded of many suppliers of these firms, it was ascertained that Aggarwal was a key person in orchestrating this racket of making fake, non-existent, dummy firms and wrongly availing and passing on an ITC of Rs 376 crore.
Aggarwal was arrested on February 9 and produced before Duty MM, Patiala House Court Delhi, who ordered judicial custody. Further investigations in the matter were in progress, the release added.