Kingpin Mayank Jain arrested, more arrests soon
New Delhi, Jan. 2 (Delhi Crown): A new GST scam worth Rs 347 has been unearthed in Delhi. The accused has been identified as Mayank Jain, proprietor of Ms. Super Steel India Ltd.
Jain has been arrested. More arrests are expected soon.
The accused was allegedly evading taxes while engaged in circular trading and issuing fake bills to claim fraudulent input tax credit to evade taxes.
A total of 11 firms have been allegedly involved in the scam.
An official statement issued by the Delhi state tax department said – “The proprietor of Ms. Super Steel India Ltd., Mayank Jain, believed to be one of the kingpins of the scam has been arrested by the department on Saturday (Jan. 1). He has been remanded to 14 days judicial custody by the judicial magistrate. More arrests may follow as the investigation unfolds.”
According to officials, the firms would issue fake or inflated invoices, without supplying any goods. All unaccounted transactions were settled in cash.
The statement further read – “It was also discovered that several of these 11 firms belong to only one person and could have been set up for the purpose of creating long tax chains to avoid detection under tax laws. Through a complex data-driven investigation, investigators uncovered that 4 of these 11 firms had filed tax returns from computers with the same IP address. Also, 6 firms had the same contact number and 4 were using the same email-id. Two other firms had the same bank account number. In a secret verification conducted by the department inspectors, none of the 11 firms was found to be existing at its registered address.”
It added – “The figure could go up as the upstream and downstream dealers of these firms are further scrutinised. The department will also take up investigation of other firms in the business chains of these suspicious firms, including those spread across other states outside Delhi.”