Director General of GST Intelligence sleuths of Vishakapatnam has arrested the mastermind behind fake invoices fraud to the tune of Rs 400 crore. The accused identified as Vennapusa Venkata Subba Reddy floated 70 shell firms and issued fake invoices to the tune of around Rs 400 crore and availed Rs 60 crore worth fraudulent input tax credit without an actual supply of goods.
DGGI Vizag in coordination with officers of Hyderabad conducted searches in Hyderabad, Bhimavaram and Guntur and seized signed blank cheque books of 30 dummy firms, fake invoices and bank account details. The accused VV Subba Reddy confessed that he facilitated the raising of fake invoices and generated illegal input tax credit without supply or receipt of goods.
The dummy firms are registered based on PAN and Aadhaar details of a known acquaintance of accuse. After obtaining GST registration in their names, massive amounts of the transaction had taken place on a paper basis. The accused opened and operated several bank accounts of the dummy firms form a single branch in Guntur. The accused was remanded to judicial custody till March 26. GST officials said that the investigation is still in progress. The officials will serve notices to the infra companies that got the fake invoices from the companies floated by Vennepusa Venkata Subba Reddy.
