In a shocking investigation by the GST officials, a series of frauds orchestrated by several companies in the city has come to light. The companies are said to have produced fake bills to evade GST.
In a shocking investigation by the GST officials, a series of frauds orchestrated by several companies in the city has come to light. The companies are said to have produced fake bills to evade GST.
Based on a tip-off on GST fraudulence, officials from the Office of GST Commissioner in Coimbatore raided, Aliya Enterprises, Vinayak Trading and Star international functioning at Ganapathy here.
Allegedly, during the raid, it was found that the companies had indulged in cheating by raising fake bills.
The officials nabbed a person named Mohammed Arif, who owned all the above mentioned companies.
He has been alleged for his involvement in printing fake bills for distributing old scrap iron but allegedly never distributed them. Mohammed had also created such fake bills in the name of hundreds of companies, reports say.
Following this, Mohammad Arif accepted his fraudulency in the Madras High Court. Court which ordered him to pay an advance amount of Rs. 5 crore and to co-operate with the officials for further investigation.
Subsequently, during the investigation, officials found that a company named Nisok Iron & Steel company functioning at Ganapathy here had also printed fake bills to evade GST upto Rs.5.19 crore.
In connection to this, the officials arrested Manickam, owner of the company and placed him under judicial custody.
In the series of investigation and search conducted by the officials, it was found that several traders in the city including Murugan Corporation Steels, Ayyappa Traders, HSM Impex and Narayana Steels were also involved in such fraudulent activities of printing fake bills.
As the investigation progressed, the officials found that a person named Karthik has been behind these companies and had sent bills to 7 other companies in Coimbatore and Tirupur, in the same style.
Following which, officials found that seven companies including Sri Sathya Sai Foundry at Avarampalayam here had been involved in printing fake bills to evade GST tax upto several crores.
All the seven companies had showed a fake inward GST credit of Rs.750 crore and created huge financial loss to the government.
According to the GST forum, any person or entity involved in GST evasion of more than Rs. 2 crore is deemed to be arrested.
Hence, Thiyagarajan, owner of Sri Sathya Sai Foundry Company has been arrested for fraudulence. It is also learned that his relatives and family members are the owners of rest of the six companies involved in this fraud.
All the seven companies have evaded Rs. 5 to 7 crore GST. The GST officials have issued stern warning to the companies to refrain from practicing much fraudulent activities to evade GST.
Based on a tip-off on GST fraudulence, officials from the Office of GST Commissioner in Coimbatore raided, Aliya Enterprises, Vinayak Trading and Star international functioning at Ganapathy here.
Allegedly, during the raid, it was found that the companies had indulged in cheating by raising fake bills.
The officials nabbed a person named Mohammed Arif, who owned all the above mentioned companies.
He has been alleged for his involvement in printing fake bills for distributing old scrap iron but allegedly never distributed them. Mohammed had also created such fake bills in the name of hundreds of companies, reports say.
Following this, Mohammad Arif accepted his fraudulency in the Madras High Court. Court which ordered him to pay an advance amount of Rs. 5 crore and to co-operate with the officials for further investigation.
Subsequently, during the investigation, officials found that a company named Nisok Iron & Steel company functioning at Ganapathy here had also printed fake bills to evade GST upto Rs.5.19 crore.
In connection to this, the officials arrested Manickam, owner of the company and placed him under judicial custody.
In the series of investigation and search conducted by the officials, it was found that several traders in the city including Murugan Corporation Steels, Ayyappa Traders, HSM Impex and Narayana Steels were also involved in such fraudulent activities of printing fake bills.
As the investigation progressed, the officials found that a person named Karthik has been behind these companies and had sent bills to 7 other companies in Coimbatore and Tirupur, in the same style.
Following which, officials found that seven companies including Sri Sathya Sai Foundry at Avarampalayam here had been involved in printing fake bills to evade GST tax upto several crores.
All the seven companies had showed a fake inward GST credit of Rs.750 crore and created huge financial loss to the government.
According to the GST forum, any person or entity involved in GST evasion of more than Rs. 2 crore is deemed to be arrested.
Hence, Thiyagarajan, owner of Sri Sathya Sai Foundry Company has been arrested for fraudulence. It is also learned that his relatives and family members are the owners of rest of the six companies involved in this fraud.
All the seven companies have evaded Rs. 5 to 7 crore GST. The GST officials have issued stern warning to the companies to refrain from practicing much fraudulent activities to evade GST.