The Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU), Haryana has arrested one Md. Shamshad Saifi resident of New Delhi on charges of creating and operating fictitious firms on forged documents and passing fake input tax credit by way of issuance of invoices without any actual receipt or supply of goods or services.

It is apparent from the investigation conducted till date, that Md. Saifi created two companies by the name of M/s Techno Electrical and M/s Lata Sales based at New Delhi on basis  of bogus and forged documents in the name of non-existent persons at addresses not even pertaining to firms. M/s Techno passed on fraudulent ITC of ₹ 98.09 crore to M/s Lata, which further generated fake ITC of ₹ 69.59 crore to various non-existent firms.

Md. Shamshad Saifi is also responsible for creating four more fake non-existent firms namely M/s Galaxy Enterprises, M/s Moon M/s Sidharth Enterprises & M/s Sun Enterprises based at New Delhi It was ascertained that all the above mentioned firms have only supplied invoices without actual supply of goods.

The investigation spanned multiple locations in Delhi and based on documentary evidence and statement recorded, it was ascertained that Md. Saifi is a key person in orchestrating this racket of making fake firms on forged documents. Accordingly, Md. Saifi was arrested today and produced before Addl. CJM, Gurugram, who ordered judicial custody. A total fake ITC of more than ₹ 190 crore has been thus passed by the accused.

Further investigations in the matter are under progress.

Fake input tax credit scheme exposed; key operator arrested and investigations continue into fictitious firms and forged invoices A tax-credit fraud was orchestrated through creation and operation of multiple fictitious firms and issuance of invoices without actual supply, resulting in passage of substantial fake input tax credit. Investigation indicates entities were created on forged and bogus documents which routed fraudulent ITC among non-existent firms. A central coordinator was identified, arrested, produced before the magistrate and remanded to judicial custody, while further multi-location investigations continue.