The CGST Delhi West Commissioned under CGST Delhi Zone after investigating one entity under investigation under Special Drive Against False Registrations found multiple entities registered at the same address where the said address was found to exist during the investigation but the owner of said premises denied any knowledge about the existence of any businesses. The supply chain analysis revealed that there was no movement of goods from the above address.
As a result, searches were conducted on multiple locations in Delhi discovered using data analytics and it was found that a person named Shiva obtained KYC credentials from people under the guise of getting sanctioned loans for them and later selling the companies. Further research revealed that Shiva created more than 30 fake companies and sold them for cash at a premium. He also stated that to avoid physical verification, he used AADHAR authentication to obtain these GST records.
These multiple companies were found to have availed/transferred ineligible ITCs of more than 50 crore. As a result, Shiva violated Section 132 of the CGST Act, 2017 and was arrested. Today he was remanded in custody. Further investigations are ongoing.