Gujarat Police are looking for the people who are behind the fraudulent businesses that are claiming tax credits

The Special Operation Group (SOG) is looking for those who set up fake companies, issued trading invoices, and claimed massive Goods and Services Tax input credits worth crores of rupees, thereby defrauding the nation.

AS per the information revealed that a Goods and Service Tax officer in their technical surveillance found out that seven firms, namely Rafai promoted by Mohammad Rafai, Alfa enterprises owner Indrish Makwana, A.S. trade owner Akram Salim, Chauhan Enterprises of Dhaval Chauhan, Reedon Enterprises by Nitin Makwana, Alfa enterprise of Asif Yusufbhai and Alfa enterprise of Nikhil Mistry were claiming huge input credits.

The Pecial Operations Group (SOG) and Goods & Service Tax (GST) teams conducted a combined search operation at these companies in November just to discover these companies did not exist on the given addresses (a plot twist similar to Scam 1992) and that the proprietors’ names and photographs did not match. When the police and the GST team discovered that fake businesses were set up using fake identities and trade transactions were set up to claim the tax input credit. The officer went on to say that even the Chartered Accountant firms and registration numbers were bogus.

Saturday updare was that a criminal complaint was filed with the crime branch police. When the GST authorities searched at Rafai enterprise location in the Mangal Bazaar area, the company’s owner Mohammad Rafai identified individual was not there, on the contrary, the said property was owned by Mahesh Mevadi and he was operating a children’s apparel shop from the premises, according to the FIR.

The same thing happened with other businesses. According to sources, the GST authorities have yet to calculate the total amount of input credit sought by these businesses. According to sources, police are concerned that this money would be utilised for unlawful or anti-national operations.

–An article by Velroy Anthony