• Notification Date: 20-06-2023
• Notification No: N/A

DGGI detects Rupees 10,000 Crore GST Fraud by 3000 Shell Companies

The Directorate General of GST Intelligence (DGGI) arrested Sanjay Dhingra who committed Rupees 10,000 crore Goods and Service Tax (GST) fraud by creating 3000 shell companies via fake details. The Central Government has involved other intelligence agencies in tracking the members of the Syndicate that has influence in several states and who are able to register shell companies. Special teams have been constituted by the DGGI and an analysis of records revealed these operational 1,000 shell companies have evaded Goods and Services Tax (GST) of more than Rs 700 crores. The end users of these fake GST were identified on an All-India basis after a search and seizure operation. 

Noida Police has arrested one more person in connection with the Goods and Services Tax (GST) fraud case of more than Rs 10,000 crore by creating fake GST numbers on fake databases. In this case, the Police had arrested eight members of an inter-state gang. The Directorate General of GST Intelligence arrested Sanjay Dhingra, the promoter of Good Health Industries Pvt Ltd, which is engaged in manufacturing of ‘Dairy Best’ brand of desi ghee. 

Upon interrogation, Dhingra revealed that they had created around 3,000 companies, out of which 1,000 fake companies were fully active and e-way bills were made from them. When these active companies were investigated, the tax scam fraud figures of about Rs 700 crore have come to the fore. In this case, a separate intelligence team has now been deployed which will work to arrest this type of racket in different states. 

According to the estimates, Dhingra has defrauded the GST department of Rs 63 crore.