Udaipur, January 2, 2025: Two men from Rajasthan, viz. Dinesh Kumar and Virendra Kumar, have been accused of creating 54 fake companies. These companies were used to cheat the government and avoid paying GST (Goods and Services Tax).

How much money was involved?

The total GST amount they siphoned of was Rs 496.27 crore, between December 2020 and August 2024.

They used fake Aadhaar cards and fake PAN cards to Register non-existent companies and open fake bank accounts. Through these fake companies, they claimed input tax credit (a GST benefit) to avoid paying taxes.

This Scam Affected Seven States

• Maharashtra
• Goa
• Karnataka
• Rajasthan
• Kerala
• Telangana
• Tamil Nadu

How were they caught?

GST officials traced their cellphone locations and arrested them. Dinesh claimed he ran a mobile shop, and Virendra said he was a student, but their activities showed otherwise.

The police initially booked them but transferred the case to the Economic Offences Wing (EOW) because it involved multiple states. Both men were arrested and later got bail after chargesheets were filed.

Source: Media Reports