Unveiled: 170 Deceptive Businesses Dismantled, Cryptic E-Way Bills Worth ₹822 Crores, Yet Genuine Turnover Only ₹106 Crores, As Per Report
Chhattisgarh Uncovers Major Tax Evasion Racket Involving Over 170 Bogus Firms
The Chhattisgarh State Goods and Services Tax (CG SGST) department has discovered a significant tax evasion racket involving over 170 bogus firms. Preliminary investigations suggest that this racket has caused a preliminary GST revenue loss of around Rs 100 crore, with authorities estimating further losses as the probe continues.
The racket, which has been under investigation by the CG SGST's Business Intelligence Unit (BIU) for over a month, was uncovered during a search at the office of the alleged mastermind, Mohmmad Farhan Sorathia, on September 12. The search revealed 172 allegedly forged firm registrations.
Investigators found that 26 of these fake firms generated e-way bills worth Rs 822 crore while reporting a turnover of only Rs 106 crore. The racket involved several brokers, scrap dealers, and companies benefiting from fraudulent Input Tax Credit claims.
The investigation has also revealed that bogus documents, such as lease agreements and consent letters, were prepared for registration, and these firms were also issuing bogus supply bills and e-way bills. The racket caused the state exchequer significant monthly losses due to fake registrations, bills, and e-way bills.
The racket extended beyond Chhattisgarh, with registrations found in Punjab, Assam, Manipur, and Odisha. The seized assets were handed over to the Income Tax Department for further action.
On September 17, a search was conducted at the residence of Sorathia's uncle, Mohammad Abdul Latif Sorathia, and Rs 1.64 crore cash and four gold biscuits weighing 400 grams were seized.
Mohmmad Farhan Sorathia, a GST tax consultant, is accused of masterminding the tax evasion racket. He had five staff members handling firm registrations, filing returns, and generating e-way bills.
A comprehensive probe and further legal proceedings are underway into the matter. The authorities are working to uncover the full extent of the racket and to recover the lost revenue. This story is from the syndicated feed. Nothing has changed except the headline.
