In a significant development, the Central Goods and Services Tax (CGST) Delhi East Commissionerate launched ‘Operation Clean Sweep’ targeting fake billers engaged in fraudulent activities. As a result, a syndicate comprising 48 fake firms exploiting input tax credit (ITC) fraudulently worth over ₹199 crore has been dismantled, leading to the arrest of three individuals, as per the finance ministry’s announcement on Tuesday.
Coordinated Action Against Fake Billing Syndicate
The CGST Delhi East Commissionerate initiated ‘Operation Clean Sweep’ based on human intelligence, further reinforced through data mining and analysis. The operation successfully identified and dismantled a syndicate of 48 interconnected fake firms involved in fraudulent ITC activities.
Arrests and Legal Action
In the initial phase of the operation, 48 fake or non-existent firms dealing in bogus invoices were exposed. Three individuals connected to these activities were arrested and subsequently remanded to judicial custody for two weeks by the Chief Metropolitan Magistrate Court, Patiala House. The investigation is ongoing to identify other syndicate members and ring leaders.
Details of Fraudulent Activities
One arrested individual, the proprietor of M/s M.K. Traders, was found to have fraudulently availed ITC exceeding ₹5 crore, a significant portion of which was passed on to other links in the syndicate. The other two arrested individuals played a role in supporting and facilitating the syndicate’s operations.
Recovery of Incriminating Material
During the operation, incriminating materials such as stamps from 55 different firms, multiple SIM cards, and documents like Aadhaar cards and electricity bills belonging to third parties were seized. The operation, conducted in challenging terrain with narrow bylanes and sensitive areas of Delhi, was made possible through the collaborative efforts of the GST officers and the Delhi Police.
This crackdown marks a significant step in curbing fraudulent practices and upholding the integrity of the tax system.