GST Fraud Worth 294 Crore Busted In Odisha

Bhubaneswar: In a major success to the Odisha GST Department’s Enforcement Squad, a GST fraud racket has been busted involved in generation of fake invoices. The fraud amounting to worth Rs 294 crore was also unearthed. The racket was involved in passing of bogus input tax credit of Rs 52.77 crore over multiple transactions routed through different chains.

The fraudsters were arrested from Bhubaneswar under the direction of SK Lohani, Commissioner (CT & GST), Odisha. The enforcement squad arrested Pramod Kumar Sahoo and Vikash Sarawgi, both residents of Bhubaneswar. While Pramod Kumar Sahoo is the proprietor of Sahoo Traders, the later was helping him in executing the fraud.

According to S K Lohani, Commissioner (CT & GST), Odisha, “Investigations reveal that the accused persons used fake identity documents of common people longing to people of Kandhamal District assuring them of benefits from government schemes but misused the same for the purpose of taking GST registration and opening of bank accounts in different banks.”

“After tracking a chain of fraudulent transactions followed by scrutiny of suspected waybill transactions, physical inspections were carried out simultaneously at 11 business establishments. These were however found to be non-existent and fictitious. During investigation, the bank officials were interrogated regarding the fraudulent opening of current bank accounts in the name of these fictitious firms and making huge cash transactions,” said Lohani.

“During interrogation, the accused and proprietors of these fake firms admitted that they were neither doing any business nor making any purchases/sales in the name of their firms. They also stated that the transactions reflected in their returns were only paper transactions without any actual receipt and supply of goods,” Lohani said.

This is the fourth major case of GST fraud busted by the Enforcement Wing of the Commissioner of CT and GST, Odisha in recent months.