The Central Goods and Service Tax (CGST) officials arrested a businessman Uday Kantilal Desai, Director of Reena Tiinaz, from Navi Mumbai for issuing fake invoices of Rs 1,000 crore to avail of tax credit worth Rs 441 crore. The officials believe that Desai inflated the turnover of the companies to get more loans from banks and other facilities. Until now, Desai has taken loans of Rs 140 crore from a consortium of banks. On October 23, the CGST officials conducted search operations at eight premises of the accused and found out that Desai issued these invoices through shell companies without supplying any actual goods.
So far, the CGST officials have made five arrests in this case. “It appears that this is case of paper transactions only without physical movement of goods. The accused have been remanded up to November 3 by the court,” Raghavendra Pal Singh, Joint Commissioner at CGST, Navi Mumbai, said. The officials carried out search operations based on specific intelligence gathered under the guidance of Kiran Verma, Commissioner of CGST, Navi Mumbai, and Joint Commissioner Raghavendra Pal Singh.