Rs 10,000 cr transactions, bogus firms: How police busted multi-cr GST scam

The Dhingra family duped the government of around Rs 68 crore by fraudulently claiming input tax credit on behalf of nine bogus firms

The Noida police on Wednesday arrested a Delhi-based businessman, his wife and son in connection with its probe into a multi-crore GST scam, officials said. The police also impounded Mercedes and Audi cars, among other items, belonging to Sanjay Dhingra (55), his wife Kanika (54) and son Mayank (27), they said. Deputy Commissioner of Police (Crime) Shakti Mohan Avasthy said the accused were held near the DND toll place by a team from Noida Sector 20 police station.

Here's a breakdown of what happened

Type of fraud: GST scam

Amount: Estimated Rs 10,000 crore (approximately $1.2 billion)

Perpetrators: Businessman Sanjay Dhingra (55), his wife Kanika (54) and son Mayank (27).

 

Based out of the Punjabi Bagh area of Delhi, the Dhingra family owns businesses with their assets running into hundreds of crores, police said.

Modus Operandi

The family duped the government of around Rs 68 crore by fraudulently claiming input tax credit on behalf of nine bogus companies. They used forged documents to claim input tax credits.

"The accused have been doing this for the last four to five years. They have been at large for the last nine months in connection with the FIR lodged in Noida. During this period they kept changing hotels frequently to evade getting traced and arrested," the officer said.

Impact

Their scam led to heavy revenue loss for the exchequer

How did the GST scam unfold?

The scam came to light in 2023 after thugs had applied for registration of bogus companies by fraudulently using the PAN details of a journalist and got two firms registered -- one in Punjab and one in Maharashtra -- while the request for a third in Delhi was rejected by the GST authorities.

Action taken

On Wednesday, the cops arrested Dhingra, his wife and son. Police investigations have shown the involvement of hundreds of bogus firms and transactions of around Rs 10,000 crore from them.

So far 41 people have been arrested in connection with the GST scam probe.

The police said an FIR in connection with the case was lodged at the Sector 20 police station of Noida under Indian Penal Code sections 420 (cheating), 467, 468, 471 (all related to forgery) and 120B (party to criminal conspiracy).

In February, the Noida police attached assets of approximately worth around Rs 12 crore of gang members involved in the GST scam and it includes their immovable properties at multiple locations in Delhi.

With PTI inputs