Exposure of 48 input tax credit-using enterprises results in an over ₹ 199 crore fraudulent scheme

 Exposure of 48 input tax credit-using enterprises results in an over ₹ 199 crore fraudulent scheme

Incriminating evidence, including tickets from 55 different companies, papers such as several SIM cards and Aadhaar cards, and power bills belonging to third parties were found during the operation carried out in conjunction with Delhi Police.

Operation Clean Sweep was carried out to stop people from printing fraudulent money

We have broken the chain of 48 fraudulent firms that were using fraudulent Input Tax Credits (ITCs). Officials from the GST department have discovered this crime involving over Rs 199 crore. In this context, three persons have been detained, according to a Tuesday statement from the Finance Ministry. Based on information received, the East Delhi Commissioner Office of Central Goods and Services Tax (CGST) reportedly launched "Operation Clean Sweep" against those creating fraudulent invoices, according to Bhasha news.

Businesses were operating using fictitious invoices

The government reportedly said that 48 fictitious entities that were receiving fictitious ITC totaling over Rs 199 crore were exposed as a result of this effort. In all, 48 phony or fictitious businesses—either fictional or nonexistent—that relied on fraudulent invoices have been found throughout the investigation. The Chief Metropolitan Magistrate Court, Patiala House, subsequently ordered the three detained individuals to judicial prison for a period of two weeks. According to the government, further research is being done after identifying more nexus members and leaders.

M/s M.K., the proprietor of, was among those detained

M/s M.K. was one of the individuals apprehended during Operation Clean Sweep. It proved to be the proprietor. More than Rs 5 crore in fictitious ITC advantages had been claimed by traders, much of which was transferred to other related sources. The other two people who were detained were crucial to the syndicate's operation and were helping and abetting it. Incriminating evidence was found throughout the investigation, including tickets from 55 different companies, Aadhaar cards, several SIM cards, and utility bills that belonged to other people.

The whole operation, according to the press, was carried out in restricted locations, such as Delhi's delicate neighborhoods and little streets. Officials from the GST department said that Delhi Police's cooperation—which included sending out enough officers to support the GST officials—was the sole thing that made the operation feasible.