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A Rs 2.2-billion fake tax-invoices racket has been uncovered, courtesy GST Intel unit

PW Bureau

The modus operandi of the racket was that several bogus companies and bank accounts were created and transactions were made without the supply of goods New Delhi: The Directorate General of GST Intelligence (DGGI) has uncovered a case of fraudulent companies engaging in fake tax invoices totalling Rs 2.2 billion to avail input-tax credit. The DGGI busted the racket after conducting searches at several official and residential premises last week in Chennai and Coimbatore in Tamil Nadu and nabbed two people in connection with the case. An official statement issued by Additional Director General K Balaji Majumdar said that several incriminating documents, like copies of fake invoices on letterheads if companies that existed merely on paper were seized.

Fake invoices for goods worth more than Rs 2.2 billion were issued without the supply of goods, the statement said.

The modus operandi of the racket was that several bogus companies and bank accounts were created using PAN and Aadhaar number of family members and employees, and transactions were made without the supply of goods, the press release said. Fake invoices for goods worth more than Rs 2.2 billion were issued without the supply of goods, the statement said. Chequebooks with pre-signed cheque leaves pertaining to 45 bank accounts, rubber stamps in the name of 30 companies and computer hard disks were also seized during searches. The DGGI has provisionally attached the bank accounts operated by the imposters and those arrested had been remanded to judicial custody, it said.