By Our Correspondent
SAMBALPUR/BHUBANESWAR: Kashmira Kumar Agrawal, Director of Madhumita Steels Industries Private Limited has been arrested on Monday from Odisha’s Sambalpur by GST Enforcement Squad for his involvement in generating fake invoices worth Rs 712 crore and passing bogus Input Tax Credit (ITC) of Rs 129 crore over multiple transactions routed through different chains.
Sources said that Agarwal fraudulently availed bogus ITC of Rs 113.81 crore and passed on bogus Input Tax Credit worth Rs 129.09 crores in the name of 14 fictitious firms created and operated by him on the strength of fake invoices, it added.Agarwal had been under the scanner of the State GST Enforcement Squad since long but he used to change his address frequently from Rourkela to Haryana to Sambalpur. During interrogation, proprietors of these fake firms admitted that they were neither doing any business nor effecting any purchases/sales in the name of their firms and the transactions reflected in their returns were only paper transactions without any actual receipt and supply of goods.
All of them also categorically admitted that they had neither deposited nor withdrawn any amount from the bank account opened in the name of their firm. The banking transactions in the name of the firms had been undertaken by the mastermind by mis-utilizing the signed chequebook and RTGS forms taken from the innocent persons in whose name registration had been taken fraudulently and in some cases by forging their signature, it further said.
It was also revealed following the investigation that the accused has transferred a huge amount of money to different firms without having any business transactions with them. In the case of one firm, he was shown to have purchased goods worth Rs 13 crore but had transferred Rs 38 crore to the said firm through its bank account raising suspicions regarding his involvement in money laundering.
Investigation reveals that the mastermind hired middlemen to collect credentials such as PAN card, Adhar Card, Photograph, etc. from persons of no means (housewives, drivers, plumber, etc.) of Sundargarh and Sambalpur District on the pretext of giving them gainful employment / handsome amount of money in every month but mis-utilised the documents to fulfill his own vested interest and defrauded the government revenue.
It is also revealed from the investigation that the accused has transferred a huge amount of money to different firms without having any business transactions with them. In the case of one firm, he has shown to have purchased goods worth Rs.13 Crore but has transferred Rs.38 Crore to the said firm through its bank account raising suspicion regarding his involvement in money laundering.
In many cases, tons of goods have been shown to have been dispatched different States through scooters, motorcycles, tractors, and cars which is not possible. During an inspection to his house/place of business, incriminating documents such as rubber stamps, bank account, passbook, pre-signed cheque leafs, ATM cards, etc. of different fictitious firms had been unearthed and seized by the Investigation Officer. An amount of Rs.2.12 Crores lying in different banks in the name of business entities operated by Agarwal have been attached by the Investigating Officer.
It is revealed from the investigation that Agarwal has fraudulently availed bogus ITC of Rs.113.81 Crores and passed on bogus input tax credit worth Rs.129.09 Crores in the name of the 14 fictitious firms created and operated by him on the strength of fake invoices. The offences committed by him are cognizable and non-bailable offence covered U/s 132(1)(c), 132(1) (b), 132(1)(l) of Odisha GST Act, 2017 and are punishable under Section 132(1)(i) of the said Act.
The GST Commissioner SK Lohani is taking steps to recover the bogus ITC availed by recipients of Odisha with interest and penalty. In respect of recipients of bogus ITC of other states, respective Commissioners shall be moved to take steps to recover the said amount with interest and penalty along with other statutory actions prescribed under the GST Act.
