GST intelligence team arrests son of MLA in Rs 520 crore fake invoice scam

The Directorate General of GST Intelligence, Mumbai Zone, has arrested Sunil Gutte, son of MLA Ratnakar Gutte in connection with a fake invoice scam worth Rs 520 crore.

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Cracking down on fraudsters, the Directorate General of GST Intelligence, Mumbai Zone has arrested Sunil Gutte, Managing Director of Sunil Hi-tech and son of MLA Ratnakar Gutte, along with his business associate Vijendra Ranka for availing input tax credit (ITC) worth Rs 520 crore fraudulently, in Maharashtra today.

GST intelligence unit is on a concerted pan-India drive to unearth fake invoice scams leading to wrongful and illegal availing and passing on of ineligible input tax credit.

THE SCAM

According to the DGGI sources, the accused M/s Sunil Hi-tech Engineers Ltd has been engaged in availing and utilising ITC based on bogus invoices, issued without any supply and receipt of goods and services.

An in-depth investigation brought to the fore a fraud to the tune of Rs 304 crore from multiple entities.

The accused used to make bogus invoices, receipts of goods and services, and passed on fraudulent ITC to the tune of Rs 216 crore to multiple agencies.

The accused used to artificially inflate the turnover and obtain an enhanced credit limit from the bank.

ACCUSED SON OF A SITTING MLA

The mastermind, Sunil Ratnakar Gutte, is the son of a sitting MLA, Ratnakar Gutte, and is the Director of M/s Sunil Hi-tech. He is the brother of a movie director, who too was arrested in August 2018, for fraudulent availing of credit and taking IGST refund in a fraudulent manner.

In 2017, his father, who owned a sugar mill, was also booked by the Maharashtra Police and the Enforcement Directorate in a case for allegedly availing loans worth Rs 328 crore from six banks, using names of 2,298 farmers, some of whom were dead, from some villages in the Parbhani district.

Meanwhile, the Anti-Evasion Team of Mumbai East Commisionerate has visited the premises of M/s Omkar Ventures Pvt. Ltd after receiving a reference from Mumbai West Commissionerate.

As the supplier was non-existent, the taxpayer reversed fraudulent ITC of Rs 1.44 crore availed by them. They also paid Rs 2.77 lakh in cash as interest and Rs 21.5 lakh in cash as penalty. Further investigation in the case is underway.

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