Hyderabad, Sep 24 : The Directorate General of GST Intelligence (DGGI) has arrested the director of a Hyderabad-based infrastructure firm for issuing fake invoices worth Rs 139.93 crore.
According to DGGI Hyderabad zone officials, the accused wrongfully availed and utilised Input Tax Credits (ITCs) to the tune of Rs 19.7 crore.
The accused was produced before a court, which sent him to judicial custody till October 6.
The accused allegedly issued fake invoices without the supply of goods and services.
The company, which is into commercial real estate, IT/ITES services and infrastructure, also availed and utilised ITCs to an extent of Rs 14.9 crore on invoices worth Rs 98.48 crore without receiving any goods or services in violation of the provisions of the Central Goods and Services Tax Act, 2017.
Acting on a tip-off, the sleuths of DGGI conducted searches at several locations in Pune, Mumbai, Chennai, Kurnool and Hyderabad and detected the irregularities.
Searches were conducted at four different locations in Hyderabad, during which officials recovered several incriminating documents, including fake transportation documents related to invoices, which have been fabricated to falsely depict movement, supply and receipt of goods, that too without the provision of a warehouse, with an intent to defraud the government exchequer.
The company has also indulged in circuitous trading of invoices involving entities across India in order to boost the turnover and enhance their Letter of Credit and Overdraft limits, to qualify as bidder for major infrastructure projects.
The agency identified two bank accounts related to the company and provisionally attached them, pending investigation.
The firm's transactions in other states are also under the radar of the DGGI. The officials questioned key personnel of the company and recorded their voluntary depositions.