Pune DGGI secures custody of second main accused in massive ₹167 crore GST scam.

He was presented in a local court, which granted police custody until September 27, and he has been placed in Yerawada Central Jail. Ongoing investigations are continuing, according to the officials. Sources indicate that Kumar was one of the two most wanted individuals involved in the fraud uncovered by the DGGI PZU in May. The first suspect was arrested in Jaipur in May 2024, and now both are in the custody of the agency.

As the DGGI investigators pursued him, Kumar was consistently on the run, frequently changing his identity and contact information to evade capture. However, after employing technological intelligence and executing a dramatic chase reminiscent of Bollywood films, they successfully located and arrested him in Barmer.

Kumar, along with his associate Rahul Kumar, was involved in establishing a syndicate of over 50 fake companies using fraudulent, altered, or forged documents to execute the extensive GST fraud. This scheme came to light following thorough data analysis and surveillance of several fictitious firms identified in Pune and Goa. They facilitated Input Tax Credit (ITC) claims without any genuine supply of goods or services, with their operations spreading across Maharashtra, Delhi, Goa, Tamil Nadu, Telangana, Karnataka, and Rajasthan.

The DGGI PZU investigators examined call detail records (CDRs), company application forms (CAFs), and the patterns of tax return filings, as well as scrutinized bank accounts. They concluded that the syndicate, which operated from various cities and states, was creating these bogus firms using aliases or fake identities, employing forged legal documents, and even circumventing the unique biometric requirements for SIM card issuance.

They also uncovered a unique modus operandi where Kumar and his associate created multiple fake identities for supposed proprietors and authorized signatories. They used SIM cards linked to forged Aadhar cards, allowing them full control over filing GST registrations, returns, payments, cancellations, and receiving OTPs at their convenience.

“We are currently questioning the accused to help uncover more fake firms that may have been established for committing these frauds, identify the involvement of other associates in this extensive racket, map the end beneficiaries, trace the proceeds of the crime, and recover funds for the government exchequer,” the sources stated.