Delhi: Two arrested in multi-crore GST fraud involving dummy firms, fund layering

Two persons including a chartered accountant have been arrested by the Economic Offences Wing (EOW) in connection with GST and VAT irregularities running into several crores, and involving alleged misuse of business credentials, dummy firms and layering of funds by routing them through multiple bank accounts, an official said on Saturday.

The accused have been identified as Rajeev Kumar Parasar and chartered accountant Atul Gupta, associated with an accountancy firm in Chandni Chowk, EOW said in a statement.

According to the EOW, an FIR in this matter was registered under various charges including fraud, on a complaint filed by one Yashashwee Sharma.

In his complaint, Sharma alleged that VAT/GST credentials and documents of his firm were fraudulently used without his knowledge or consent to conduct suspicious transactions worth around Rs 28.4 crore.

“The investigation revealed that bank accounts of the complainant’s firm, allegedly operated by Rajeev Kumar Parasar and another proprietor, were extensively used for routing and layering funds running into several crores,” it read.

Analysis of the bank accounts showed that money credited from various firms and entities was immediately withdrawn in cash or transferred through RTGS, NEFT and other banking channels to multiple beneficiary accounts without any corresponding genuine business activity.

The probe further revealed that dummy firms and accounts were allegedly operated with the assistance of Atul Gupta and one Prakash Gupta, who has since died.

Investigators also found that GST returns and statutory compliances of the suspected firms were allegedly filed through the firm, police said.

According to investigators, the accused, along with their associates, allegedly misused GST/VAT credentials and opened or operated bank accounts in the names of dummy proprietors to route and layer huge sums through multiple firms and beneficiary accounts.

“The funds were transferred rapidly across accounts or withdrawn in cash to conceal the identities of actual beneficiaries and obscure the financial trail,” the statement read.

The EOW said Rajeev Kumar Parasar had remained absconding and untraceable for a considerable period before he was finally traced and arrested along with Gupta on May 12.

Both accused were produced before a court, which sent them on police remand for custodial interrogation, recovery of incriminating evidence and tracing of co-conspirators and the complete money trail, the statement added.

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