The Directorate General of GST Intelligence (DGGI), North Zone, Gurugram has arrested three persons, namely Shri Alok Bhargava and his sons Shri Akul and Shri Atin Bhargava, owners of M/s Delhi Foils, M/s Abinox Industries and M/s Matalax Industries, Wazirpur, New Delhi. The above said firms had cumulatively taken Input Tax Credit fraudulently of ₹ 12.90 crore involving invoice value approximating ₹ 72 crore on the strength of invoices issued by non-existent firms without the actual receipt of material with an ulterior motive to defraud the government exchequer.

Thus, Shri Alok Bhargava and his sons Shir Akul and Shri Atin Bhargava, have committed an offence under the provisions of Section 132 (l ) (c) of the CGST Act, 2017 which are congnizabe and non-bailable offence under section 132(5) of the CGST Act, 2017 being punishable under section 132 (1) (i) of the CGST Act, 2017. Consequently Shri Alok Bhargava and his sons Shir Akul and Atin Bhargava, were arrested on 30.12.2020 under Section 69 (1) of CGST Act, 2017 following which they were produced before the Metropolitan Magistrate, Patiala House Court, New Delhi on 30.12.2020 and remanded to Judicial Custody for 14 days.

Further investigation in the matter is in progress.

Fraudulent input tax credit claims led to arrests under CGST provisions for offences involving fake invoices. Investigation found fraudulent availment of input tax credit based on invoices issued by non-existent suppliers and without receipt of goods, prompting criminal enforcement under the CGST Act for cognizable and non-bailable offences; arrests were effected and the accused remanded to judicial custody while investigation continues.