Rs 8.95 cr GST fraud unearthed, 1 held

Chandigarh, February 10

Officers of the investigation wing, GST Department, today arrested Balwinder Singh of Mandi Gobindgarh for creating and operating bogus firms across states, including Punjab, Delhi and Rajasthan, and passing on fraudulent ITC to the tune of Rs 8.95 crore to various firms without payment of tax to the government.

An official spokesperson of the government, said an authorisation for the arrest of Balwinder and his son Prince Dhiman was issued by Commissioner, State Tax, under Section 69 of the GST Act.

The spokesperson said seizure operations were conducted by the teams at multiple locations, including the accused’s house, to gather evidence for establishing the modus operandi, which involved creating firms in states outside Punjab, dealing in iron scrap and finished goods, and thereafter passing the same to other firms created in own name or that of other persons and kin, and then forwarding to various beneficiaries in the state.

He said the department had got an alert about the accused after a firm (Suvidha Enterprises), operated by him, was cancelled suo moto last year for being non-existent at the place of business. — TNS