The arrests of Ramesh Wadhera and Mukesh Kumar were made by the Directorate General of GST Intelligence (HQs) following an input from Allahabad Bank, Paschim Vihar, New Delhi, the Finance Ministry said.
The bank noted suspicious transactions in accounts of four proprietorship firms (Monal Enterprises and others) wherein large quantum of IGST refunds had been received by them immediately after their opening, without any prior business transaction history.
Further, the refunds credited to these bank accounts were withdrawn/transferred in quick succession. Developing on the input, DGGI (HQs) verified that the addresses of these firms were either non-existent or the firms were not operating at the given addresses.
"Further investigations revealed that the said four firms were in the names of benami individuals whose identification documents had been fraudulently obtained for the opening of these bank accounts and to obtain GST registrations," the statement said.
It was also revealed that the four firms had no corresponding purchases against the exports claimed to have been made by them, nor had any export proceeds been realised. E-way bill data also revealed that corresponding movement of goods did not exist.
"Therefore, the said 4 firms had indulged in fraudulent availment of IGST refunds on the basis of fake invoices," the ministry said.
The two have been arrested allegedly for their active role in defrauding the exchequer by claiming fraudulent integrated goods and service tax (IGST) refunds. Ramesh Wadhera is learnt to have several old cases of (Directorate of Revenue Intelligence) DRI/Customs against him.
( With inputs from IANS )