The officers of Anti Evasion wing of Central Tax, Delhi West has caught a major racket of fake invoicing of Rs.1200 crores involving fraudulent Input Tax Credit (ITC) of Rs.124 crores. They were using a network of 49 shell companies and one person has been arrested, named, Daya Shenker Kushwaha.
The accused was fraudulently obtained two different PAN cards using photographs that were photoshopped and created 14 firms. The remaining 35 firms were created through identity theft by using KYC documents of poor class of individuals. So, overall , the accused had created 297 firms some of which were used for banking transactions.Roughly, 60 fake bank accounts has been identifies so far.Fake invoicing were issued to buyers, who availed the fraudulent input tax credit without actually receiving any goods. Daya Shankar Kushwaha also admitted to investigators that no actual movement of goods took place against the invoices.