State CID Crime on Friday arrested a man identified as Nilesh Mali for allegedly floating 26 firms to show fictitious transactions of Rs 1,646.14 crore to the state GST department in a bid to get tax rebate for those transactions. The accused had allegedly caused a loss of Rs 67.42 crore to the public exchequer, said a CID official.
According to the police, the accused was absconding since last six months after the scam was unearthed by the state GST department.
Mali used to get identity cards, election cards and driving license from people of economically weaker section like panipuri vendor, cycle repairing store owner and taxi-drivers on the pretext of opening their bank accounts.
But he later used those documents to get registered with the GST department for the dummy firms. By showing fictitious transactions in name of the dummy firms, he took loans from the banks and obtained tax rebate, said officials.
Mali had even made various e-transactions on those dummy firms to mislead the state GST department. The CID has initiated probe to know if other persons are involved in the alleged scam
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