The Directorate General of GST Intelligence (DGGI) arrested Kapil Chugh, the alleged mastermind of GST refund frauds involving approximately Rs 1,825 crore, the Ministry of Finance said on Monday. The officials from DGGI Ahmedabad unit arrested Chugh at Indira Gandhi International (IGI) Airport in Delhi on Sunday (April 19) as he returned from Dubai, the ministry said in a statement.
Chugh ignored as many as 22 summons issued by the DGGI’s Ahmedabad unit, the statement read. He fled to Dubai after committing the GST refund fraud, which spanned multiple jurisdictions and involved fraudulent Input Tax Credit (ITC) claims on zero-rated supplies.
The investigation revealed that Chugh, along with his close associate Vipin Sharma, devised a network of dummy firms to illegally avail and encash ITC. The entities were registered using borrowed or fake KYC documents. These shell companies lacked any genuine business infrastructure, manpower, or operational activity at their declared addresses.
Dummy proprietors and directors served merely as name-lenders, receiving fixed monthly cash payments, while all key operations—including GST registrations, invoice generation, banking, return filings, and refund claims—were centrally controlled by the accused.
20/04/2026 Financial Express
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