GST fraud? Gujarat cops register case to probe 200 shell companies created by criminals

The Ahmedabad crime branch of the Gujarat Police on Thursday registered a case for a thorough probe into the creation of more than 200 shell companies by a group of organised criminals.

According to news agency ANI, the case was registered after a reference was received from the Directorate General of GST Intelligence (DGGI) that sought an investigation into the creation of these shell entities, which enables criminals to fraudulently receive and pass on input tax credit in lieu of bogus invoices, without supplying any goods and services.

A total of 23 premises in seven cities of Gujarat—Ahmedabad, Bhavnagar, Junagarh, Veraval, Rajkot, Surat and Kodinar—have been searched so far by Enforcement Directorate (ED)'s Ahmedabad unit in a money laundering case registered against Dhruvi Enterprises and others in the GST fraud matter.

More to follow...