in

Punjab Tax Fraud: ₹200.05 Crore Fake Billing Scam Exposed, Mastermind Arrested for ₹30.52 Crore Fraud

GST Intelligence Officers in Ludhiana arrest Satveer Singh Sekhon for orchestrating a ₹200 crore fake billing scam and ₹30.52 crore fraudulent refund.
GST Intelligence Officers in Ludhiana arrest Satveer Singh Sekhon for orchestrating a ₹200 crore fake billing scam and ₹30.52 crore fraudulent refund.

Punjab Tax Fraud: GST Intelligence in Ludhiana has uncovered a ₹200.05 crore fake billing scam, leading to a ₹30.52 crore fraudulent refund. Read how mastermind Satveer Singh Sekhon was arrested and what this means for Punjab’s financial system.

Key Highlights:

  • ₹200.05 crore fake billing scam exposed in Ludhiana.
  • Mastermind Satveer Singh Sekhon arrested for fraudulent tax refund of ₹30.52 crore.
  • Investigations underway to uncover a larger network of dummy firms involved in GST fraud.

Ludhiana, October 13, 2024 – In a significant crackdown on financial crime, the Directorate General of GST Intelligence (DGGI) Ludhiana Zonal Unit has exposed a massive fake billing racket worth ₹200.05 crore, leading to a fraudulent refund claim of ₹30.52 crore. The key accused, Satveer Singh Sekhon, has been arrested for orchestrating the scam through a network of shell companies.

Sekhon, the mastermind behind the operation, ran three firms: M/s Batala Metal Industries, HS Steel Industries, and Citizen Industries. These companies were set up to appear as legitimate entities involved in the trading and manufacturing of MS scrap, HR coils, and ERW pipes. However, they were merely front organizations used to generate fake invoices and claim fraudulent input tax credit (ITC).

The scam was executed through fake billing without any actual movement of goods. By issuing these fictitious invoices, Sekhon and his associates were able to inflate sales figures, allowing them to claim ITC refunds under the GST regime. The fraudulent claims, amounting to ₹30.52 crore, were processed without the supply of any goods—a blatant violation of the CGST Act, 2017.

Investigators uncovered a trove of incriminating evidence during raids at Sekhon’s residence and business premises. Among the seized items were a CPU, numerous fake invoices, checkbooks, passbooks, and ledgers tied to his fake operations. Sekhon operated as a partner in one firm, while running the other two companies under the names of his wife and driver, further obscuring his involvement in the scam.

Authorities believe this case is part of a much larger network of fraudulent activities aimed at exploiting the tax system. “This is just the tip of the iceberg,” a senior DGGI official stated. “We are currently investigating other dummy firms and shell companies that might be involved in similar schemes. Our focus is on identifying the full extent of this operation and bringing those responsible to justice.”

The discovery of the ₹200.05 crore fake billing operation has raised concerns about the increasing sophistication of financial fraud in Punjab. Experts believe that such scams not only undermine the GST system but also cause significant revenue loss to the government.

Legal Action and Further Investigation

Sekhon has been remanded into judicial custody, and further investigations are underway to trace his network of accomplices and the final beneficiaries of the fraud. Authorities are also probing whether other high-profile figures or businesses are involved in this widespread scam.

The DGGI Ludhiana unit has vowed to continue its efforts in tracking down similar fraudulent entities operating in the region. This operation serves as a stern warning to those attempting to manipulate the GST system through fraudulent practices.

With the arrest of Sekhon, officials hope to send a clear message that financial crimes of this magnitude will not be tolerated, and perpetrators will be held accountable.

What do you think?

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Bryan Johnson, American entrepreneur and venture capitalist

Bryan Johnson’s revealed anti-aging SECRET, How he stays young

Fresh beetroot salad served with colorful vegetables, highlighting its nutritional benefits for children's health.

Include This Superfood in Your Child’s Diet to Prevent Anemia and Constipation