Raid on scrap dealer in Waluj in bogus ITC scam

Sameer Malik remanded judicial custody

Aurangabad, Feb 9:

A Delhi based businessmen who duped the government of crores of rupees by producing fake GST Input Tax Credit (ITC) bills without doing any actual business was arrested by the Central Goods and Services Tax (CGST) officials and produced before the court. The court remanded him in judicial custody till February 18. A scrap dealer in Hanumannagar,Waluj was raided on Wednesday in this case.

According to information, Malik had started a firm called Sunsize Enterprises in Naregaon. He had done bogus registration of the firm and made bogus bills of Rs 60 crore. ITC worth Rs 10 crore and forwarded it to 15 to 16 scrap dealers in the city. After the CGST officials came to know about the transaction, they called Malik to city and arrested him at the airport on February 4. The court remanded him in judicial custody. The CGST officials are now looking for more than 17 scrap dealers in the city who swindled the government coffers by taking advantage of fake input tracks credit. On Wednesday, the first raid was carried out on a scrap shop in Hanumannagar in Waluj. Investigating officer Naria Praveen Kumar is conducting further investigation under the guidance of CGST commissioner Manoj Kumar Rajak, additional commissioner SB Deshmukh, deputy commissioner Chandrakant Kedar.

Maik owns 50 firms

Malik has set up more than 50 firms in the state. He made bogus bills by showing scrap metal business and took advantage of ITC to defraud the government to the tune of crores. The scam is supposed to be spread in states including Aurangabad, Delhi and Hyderabad.