AHMEDABAD: Making a major headway in the Rs 900-crore bogus billing scam, the state goods and services tax (SGST) department has arrested the mastermind of the scam. Mohammad Abbas Rafiqali Meghani alias MM. Meghani is the ninth person arrested in the case.
"Based on intelligence input, we learnt that Meghani was at a hideout in Bhavnagar. Our officials and inspectors surrounded the location from all exit points. Even though the accused tried to escape from the backdoor, our officials managed to nab and arrest him," said a senior SGST department official.
In statewide searches conducted across some 71 locations, the department had unearthed total bogus billing or fake transactions in three cases worth Rs 1,741 crore, and illegal ITC worth Rs 319 crore has been claimed thus far. During these operations, Afzal Sajwani and Meenaben Rathod were arrested.
Meghani's involvement was identified after evidence came to light during search conducted at Sajwani's residence.
"We have found evidences that Meghani was operating 25 firms and had availed illegal ITC to the tune of Rs 135 crore using bogus bills worth Rs 739 crore. We have arrested him," the state GST department said.
During the course of investigation, the role of Shabana Kalliwala of Bhavnagar, who owns HK Metals, also came to light."We learnt that HK Metals claimed ITC to the tune of Rs 16 crore using bogus bills worth Rs 87 crore. The firm is registered in the name of Shabana Kalliwala and the authorised person is Hasan Aslam Kalliwala," SGST officials revealed.
Shabana was arrested by the department for her involvement in the alleged fake billing scam.
As further investigation progresses, the size of the fraud committed in the multi-crore fake billing scam unearthed on July 7, has only increased. The scam came to light as Bhavnagar-based Madhav Copper Limited was found to be involved in the fake billing scam. It has utilized fake bills worth Rs 425 crore to wrongfully claim input tax credit (ITC) worth Rs 75 crore. With further evasion through illicitly claimed ITC, the company has now evaded taxes worth Rs 137 crore. The chairman of the firm, Nilesh Patel, however, continues to remain absconding, despite being summoned by the department.
