Major GST Scam under Investigation Involving 200 Benami Companies and GMB

The Gujarat police are conducting an ongoing investigation at the office of the Gujarat Maritime Board in Gandhinagar in connection to a GST Input Tax Credit scam involving 200 benami companies. The focus of the investigation is on information leakage related to the ports. The case was first brought to light by the Directorate General of GST Intelligence (DGGI) and is now being looked into by the Gujarat Police and the Enforcement Directorate (ED).

The scam reportedly involved the establishment of more than 220 benami firms using falsified documents to fraudulently claim Input Tax Credit (ITC) through fake bills. This deceitful activity is believed to have caused significant financial losses to the government. Currently, eight individuals, including Mahesh Langa, a journalist from The Hindu, have been arrested in connection to the case and are in judicial custody.

The investigation continues as authorities work to uncover the extent of the scam and bring those responsible to justice. The fraudulent scheme, which exploited loopholes in the tax system, has raised concerns about the need for stricter regulations and oversight to prevent similar incidents in the future. The collaboration between law enforcement agencies highlights the importance of cooperation in combating financial crimes that undermine the integrity of the tax system and harm the public coffers.

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