DGGI's Gurugram unit arrests 2 more for GST fraud case worth Rs 176 cr

Gurugram Zonal Unit (GZU) of the Directorate General of GST Intelligence (DGGI) has incarcerated two more people for passing on a total fake input tax credit (ITC) of Rs 176 crore. Sanjay Goel, proprietor of Redamancy World and Deepak Sharma, a de-facto controller of 8 non-existent firms have been arrested in the matter. Upon further investigation, role of two more people -- chartered accountant Manish Modi and Partner of M/s. Agarwal and Company Gaurav Agarwal has surfaced.

M/s. Agarwal and Company is also the authorised dealer of the ITC in question. Manish Modi was arrested on charges of creation of fake firms-- M/s. Nivaran Enterprises and M/s. Panchwati Enterprises in order to pass on fraudulent Input Tax Credit (ITC) worth Rs 36 crore without any actual supply of goods or services, according to a Finance Ministry statement.

Evidence that he might be controlling or managing more such firms for similar purpose has also been found. On the other hand, Gaurav Agarwal also allegedly passed on fake ITC amounting to Rs 15 crore (including GST and cess) and has been arrested for the same.

“Accordingly, Manish Modi and Gaurav Agarwal were arrested on 23.08.2021 and produced before, Duty MM Delhi, who ordered judicial custody for 14 days. Fake ITC of more than Rs 36 crore and Rs 15 crore respectively fraudulently passed on by two persons. Further investigations in the matter are underway,” the statement dated August 25 further read.

Edited by Mehak Agarwal

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