GST scam: Absconding 'core member' held from Delhi, says Noida Police

Noida: The Noida Police on Tuesday said they have arrested one more person in connection with its probe into the 'Goods and Services Tax' (GST) fraud case involving thousands of bogus companies and revenue loss to exchequer.

In June 2023, the police had busted a gang involved in what is now known as the 'GST Scam' wherein over 3,077 bogus companies were unearthed on whose behalf input tax credit was being claimed fraudulently.

Police investigations showed transactions of around Rs 10,000 crore from these bogus firms, and so far over two dozen people have been arrested in the case, according to officials involved in the probe.

"On Monday, accused Vikas Dabas, 29, who was absconding for the last several months and was involved in the fake GST firm scam has been arrested from Mubarakpur Delhi. Several other gang associates of the accused have been arrested by the police and sent to jail," a police spokesperson said.

Deputy Commissioner of Police (Crime) Shakti Mohan Avasthy, who has been involved in the probe since the beginning, told PTI that Dabas was involved in preparing forged documents and is a 'core member' of the gang.

Dabas carried a reward of Rs 25,000 on his arrest in connection with the case, 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), police said.

Earlier this month, the Noida police also attached assets 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.

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