Pune, 10 October 2024 

 

Intelligence gathered by the officers of DGGI, Pune, led to the identification of fraudulent activities involving M/s N.L. Traders, registered in Pune, which had claimed Input Tax Credit (ITC) amounting to Rs. 2.27 crore from firms that were ab-initio cancelled. During verification of suppliers, M/s H.B. Trading Company, a purportedly active proprietorship in Hyderabad, was found to be non-existent at its declared address. 

Further investigation through IPDR/CDR analysis of e-way bills and call records linked Shri Mohammed Riyaz Uddin based in Hyderabad, Telangana to the filing of e-way bills for M/s H.B. and 57 other fraudulent firms. A search of his residential premises on 08.10.2024 led to the seizure of approximately 2600 fake invoices, five rubber stamps of different firms, and a pendrive containing IDs and passwords of active firms.

Laptops found on-site, equipped with tally software, was being used for generating e-way bills and invoices for a total of 58 entities. An analysis revealed that these entities fraudulently passed on ITC of Rs. 561.58 crore, resulting in substantial loss to the exchequer. Md. Riyaz Uddin orchestrated a sophisticated operation involving fake invoices and e-way bills without any genuine supply of goods or services, enabling the fraudulent passing of ITC through fictitious entities.

As the mastermind behind this elaborate scheme, Md. Riyaz Uddin was arrested from Hyderabad, Telanagana for his role in generating invoices and filing e-way bills for fake GST firms, contributing to the significant fraud amounting to Rs. 561.58 crores. Further investigation is in progress.

 

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PIB Pune | H.Akude/D.Rane

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