Two other suspects have been arrested in line with the 134 crore GST evasion case in Madhya Pradesh. They have been taken into police remand until July 7 after they were arrested. Vinod Sahay alias N.K. Khare, who was the supposed master mind behind the scam, had been caught previously.
Sheikh Jafar, a resident of Anuppur, had established two dummy companies, Amber Coal Depot and Anay Traders, on the directions of Vinod Sahay, according to the Economic Offences Wing (EOW). These fake firms were identified to be using business relations with other fake firms like Maa Rewa Traders, Namami Traders and Abhijeet Traders.
It was found that these bogus companies issued invoices for a huge quantity of coal supplied to huge thermal power plants and industries, including Prakash Industries, but sold no coal. These transactions were paper-only orders to obtain false Input Tax Credit (ITC) on Goods and Services Tax (GST) so that they would suffer a loss of 134 crores to the government.
Sheikh Jafar, along with some people of Bilaspur, developed fake challans of coal supply, developed fake truck numbers and other supporting documents to show the operations were genuine. The scam allowed them to file false GST credits and launder massive sums of cash.
The EOW had only two days earlier arrested Vinod Sahay at Ranchi in Jharkhand. His continued interrogations have offered useful inputs, which have enabled the arrest of more people. According to the officials, there are more names that might be added as the investigation drags on.
The EOW has made this sophisticated racketeer with increased force and is investigating financial documents, trail of communication and other material to investigate. Additional arrests and exposures are likely to happen over the subsequent days as the fraud continues.
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