GST Evasion Racket Uncovered: Journalist Among Those Arrested

The Directorate General of Goods and Services Tax Intelligence (DGGI) has initiated a comprehensive investigation into a significant Goods and Services Tax (GST) evasion scheme, unveiling more than 200 fraudulent companies implicated in deceptive transactions nationwide. This major probe focuses on bogus Input Tax Credit (ITC) claims amounting to crores of rupees.

The Ahmedabad Crime Branch, acting on intelligence received from the DGGI, carried out synchronized raids across 14 locations, including cities such as Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar. These operations resulted in the apprehension of over 33 individuals, suspected of orchestrating the establishment of 12 fictitious firms. Among those detained is Mahesh Langa, a journalist from ‘The Hindu,’ and the son of a prominent Member of Legislative Assembly (MLA) from Saurashtra, who is currently under investigation for his connection to the financial fraud.

ACP Bharat Patel of the Crime Branch disclosed to the media, “Journalist Mahesh Langa has been arrested based on a complaint from the GST authorities, alleging the utilization of forged documents. Relevant documents have been seized, and a thorough investigation is underway. Further actions will be dependent on findings as the inquiry progresses.”

Reportedly, the magnitude of the investigation extends across 33 locations nationwide, targeting fraudulent ITC claims. Authorities have spotlighted several key entities and builders at the heart of this elaborate scam, including:
– Arham Steel: Nimesh Vora, Hetalben Vora
– Om Construction Company: Rajendrasinh Saravaia, Vanrajsinh Saravaia
– Shree Kankeswari Enterprise: Kalubhai Wagh, Prafulbhai Waja
– Raj Infra: Ratnadeepsinh Dodia, Jayeshkumar Sutaria
– Haresh Construction Company: Nilesh Nasit, Jyotish Gondalia
– D.A. Enterprise: Langa Manojkumar Rambhai
– Ethiraj Construction Pvt. Ltd.: Nilesh Nasit, Jyotish Gondalia
– B.J. Odedara: Bhagirath Odedara, Bhojabhai Odedara
– R.M. Dasa Infrastructure Pvt. Ltd.: Nathabhai Dasa
– Aryan Associates: Ajay Barad, Vijaykumar Barad
– Prithvi Builders: Paresh Pradipbhai Dodhia

These individuals and companies are accused of creating shell companies to facilitate fraudulent tax claims, effectively evading GST payments. The investigation, which remains active, anticipates further arrests as evidence mounts regarding this extensive financial fraud.

In a recent press release, the Ahmedabad Crime Branch stated, “Preliminary findings suggest involvement of over 200 fraudulently established firms functioning in a coordinated manner to exploit the Government Exchequer by procuring and distributing bogus Input Tax Credit. The use of forged identities and documents to establish such entities, aimed at tax evasion, has been highlighted.”

The Central GST department’s scrutiny has led to the discovery of falsified documentation in the names of Mahesh Langa’s family members, linked to dubious transactions within these fraudulent entities. Deputy Commissioner of Police (Crime), Ajit Rajian, confirmed, “The journalist was apprehended following elaborate questioning.”

The investigation also marks several businesses, including Dhruvi Enterprise and Om Construction, as complicit in these fraudulent practices. Legal proceedings are underway as authorities endeavor to unravel this large-scale financial conspiracy, which is believed to have resulted in significant revenue losses to the Government.