It was included in its book by Essel Group to save income tax and increase the share of its companies by increasing turnover.
- Essel Group employees have been both arrested accused
- The two also formed fictitious companies for the Essel Group
Goods and Services Tax (GST) officers have taken action on the Bogus Input Tax Credit (ITC). Officers have caught two people giving bogus ITC worth Rs 392 crore. These people gave this ITC to companies of Essel Group through fake firms. This ITC was given without the supply of any kind of goods and services.
Former Essel Group employees are both arrested accused
The CGST Commissionerate of East Delhi had recently revealed a gang operating fictitious companies. In the same case, the police have arrested Naresh Dhondiyal and his partner Devendra Kumar Goel. Devendra is a Chartered Accountant by profession. Both the accused are former employees of Essel Group. According to the statement issued by the Finance Ministry, the two individuals are not directly connected to the Essel Group at this time. However, both have given the benefit of fake ITC to Essel Group.
Benefit made by creating a layer of fake firms
According to the statement of the Finance Ministry, the investigation revealed that to give the benefit of ITC to Essel Group, the two accused had created a layer of fake companies like real companies. Both of these gave the benefit of ITC without the supply of goods and services to the Essel Group. This was apparently done to enable the Essel Group to take advantage of the GST’s unfair input tax credit. The Finance Ministry said it was included in its book by Essel Group to save income tax and increase the share of its companies by increasing turnover.
Devendra Goyal used to arrange fake invoices
According to the Finance Ministry statement, Naresh Dhondiyal used to set up fictitious companies for the Essel Group. At the same time, Devendra Kumar Goel used to arrange fake invoices of these fake companies. ITC worth Rs 92.18 crore was availed through fictitious companies of Essel Group, while ITC worth Rs 300 crore was availed through other fictitious companies. Thus this sidinket has caused a loss of more than Rs 392 crores to the government exchequer.
Both were sent to custody by 18 March
Dhondiyal and Devendra have been sent on remand in judicial custody till March 18. The matter is still being investigated. After the implementation of the GST system, 30 people have been arrested in various cases in the Delhi zone so far. GST evasion of Rs 4,450.86 crore is estimated in these cases.
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