The CGST Delhi West Commissionerate under CGST Delhi Zone, upon analysis of an entity under investigation as part of Special Drive against fake registrations, found multiple entities registered on the same address wherein the said address was found existent during verification but the owner of the said premises denied any knowledge about existence of any firms. Supply chain analysis revealed that there was no movement of goods from the said address.
Accordingly, searches were undertaken at multiple locations in Delhi discovered using data analytics and it was found that a person named Shiva has been obtaining KYC credentials from persons on the pretext of getting loans sanctioned for them and subsequently selling the firms. Further search revealed that Shiva has created more than 30 fake firms and sold them in cash at a premium. He also stated that to avoid physical verification, he used AADHAR authentication to obtain these GST registrations.
These multiple firms were found to have availed/passed on ineligible ITC of more than 50 crore. Accordingly, Shiva violated Section 132 of the CGST Act, 2017 and was arrested. He was remanded to judicial custody today. Further investigation is in progress.