Five accused in the fake goods and services tax (GST) billing scam in Gujarat were arrested by the Rajkot branch of the economic offences wing (EOW) today. The arrests happened after the police and EOW officials searched 14 locations simultaneously. A company linked to The Hindu journalist and key accused Mahesh Langa has come under scrutiny.
The locations included Bhavnagar, Jamnagar, Ahmedabad, Veraval, Kadi, Mehsana, Gandhinagar, Shapar, and Rajkot. The five suspects allegedly have a hand in creating fake bills and transactions.
Police inspector SM Jadeja said a GST fraud worth approximately Rs 60 lakh has been committed using a Rajkot-based company, Parmar Enterprises.
Deputy Commissioner of Police (Crime) Parthrajsinh Gohil said the Rajkot police received information 20 days ago about fraudulent transactions where fake bills were being generated by shell companies to pass on GST credits.
During investigation, they found that three companies -- DA Enterprises, Aryan Associates, and Arham Steel -- had already been checked by the Ahmedabad Crime Branch. Based on this information, the Rajkot Crime Branch took action.
Parmar Enterprises was also involved in GST fraud in other Gujarat cities including Mehsana, Junagadh, Gandhinagar, Rajkot, Gir Somnath, and Jamnagar.
DA Enterprises, a company linked to Mahesh Langa, was involved in a majority of the undisclosed transactions in the scam.
Mahesh Langa's bail petitions were rejected, except for one in which a sessions court granted him bail. He remains in jail pending a high court decision on his bail, expected on Friday.
The police may question Mahesh Langa again, following the arrests by the Rajkot EOW in the GST scam. Parmar Enterprises was allegedly created using a fake rental agreement to obtain a GST number. This rental agreement was submitted along with the application for GST registration, leading to the creation of the 'Parmar Enterprises' GST number.
Using this fake company, several other companies participated in the GST fraud. The companies involved include Yash Developers, Ikara Enterprises, Civil Plus Engineering, Dhanshree Metal, DA Enterprises, Aryan Associates, Jyoti Infrastructure, Arham Steel, Riddhi Infrastructure, Ashapura Trading, Shiv Milan Plastics, Globetra Impex, Maa Durga Steel, Maruti Nandan Construction, and Lakhubha Nanbha.
