Pune: GST investigators nab businessman who set up fake companies to commit fraud of Rs 52 crore 



Pune : The Directorate General of GST Investigation (DGGI) on Wednesday arrested a man for setting up fake companies and giving fake input tax credits through fake invoices without exchanging goods. He has been remanded in judicial custody for 14 days. This is for the first time that the Pune unit has arrested a businessman for allegedly cheating the government of such a huge amount.

The name of the accused is Tushar Munot, the proprietor of Rutu Enterprises and Reuse Enterprises located at Parmar Trade Centre in Sadhu Vaswani Chowk, Camp. Companies were registered in his name in Maharashtra, Madhya Pradesh, Uttar Pradesh, Himachal Pradesh. Input access credit was being misused by exchanging fake invoices without exchanging actual goods in the name of these companies. This caused a loss of Rs 52 crore to the tax department.

Suhel Qazi of the GST Pune division said in a statement that Munot was the mastermind behind the case. He was later arrested from a village in Paranda taluka of Osmanabad district.

Munot individually and collectively utilized and passed on fraudulent input tax credit on the basis of fake invoices without movement, receipt or supply of goods or services and defrauded the government exchequer to the tune of Rs 52,19,15,174 on the taxable value Rs 265,60,64,126 under the names of various forms, informed DGGI.

On receiving the lead, Pune unit gathered the intelligence and based on it, it was revealed that various firms belonging to Munot were engaged in the activity of issuance and receiving invoices without movement of goods or supply of services. Therefore, the intelligence unit initiated an investigation against Rutu Enterprises owned by Munot, Reise Enterprises owned by Munot and Suraj Patil and Namo Enterprises owned by Abhijeet Munot.

It was revealed during investigation that only two firms, Rutu Enterprises and Reuse Enterprises, were actually in existence while three other firms have their presence merely on paper. GST invoices were received and supplied by Munot under the names of all five firms, including the non-existent ones. Without supply of any goods and services, GST invoices were supplied and received. The GST amount mentioned on such invoices was utilized and passed on to the various companies by his five firms.

The prosecution opposed his bail after judicial custody. The chief judicial magistrate rejected his bail plea saying that, “Many key persons in whose name the dummy companies had been set up are not responding to the summons and are absconding. If he is not sent to jail, he will flee and tamper evidence and destroy key documents,” and sent Munot to jail.

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