CH News, Bengaluru
Officials of the Commercial Tax Department in Bengaluru have uncovered a massive fake Input Tax Credit (ITC) fraud estimated to be worth nearly Rs 2,000 crore. As part of the ongoing investigation into the large-scale tax evasion network, the department has reportedly issued a notice to National Travels, a well-known transport company linked to Karnataka minister B. Z. Zameer Ahmed Khan. Authorities suspect that vehicles belonging to the company may have been used in the alleged fraudulent operations involving fake scrap transportation and fabricated tax invoices.
According to officials involved in the investigation, the fraud network allegedly operated by creating fake bills under the guise of transporting scrap materials such as iron and other recyclable goods. Investigators believe that no actual business transactions took place and that the accused generated fraudulent invoices solely to claim illegal tax benefits through fake Input Tax Credit claims.
The Commercial Tax Department stated that the scam involved the circulation of fake invoices and fabricated e-way bills to create the appearance of legitimate commercial transactions. Authorities suspect that vehicles belonging to National Travels were allegedly used to support these false transport records and validate the fake business activities linked to the tax fraud.
As part of the probe, the department has issued a notice seeking clarification regarding the use of the vehicles and related transport documentation. Officials are reportedly examining whether the vehicles were knowingly involved in the fraudulent activities or whether they were used without proper oversight.
Investigators have described the case as one of the biggest fake ITC scams detected in the state in recent years. The estimated value of the fraud has been pegged at nearly Rs 2,000 crore, raising serious concerns over misuse of the Goods and Services Tax system through shell companies and fabricated transport operations.
The department has already intensified its crackdown on the alleged network and has so far arrested seven individuals believed to be key operators in the scam. Officials are currently interrogating the accused to identify the wider network of companies, transport operators, and financial beneficiaries connected to the fraudulent transactions.
Authorities are also conducting a detailed examination of fake firms, forged e-way bills, and transport records allegedly used to facilitate the tax evasion racket. Investigators believe that the questioning of arrested suspects may reveal additional links and potentially expose a larger interstate fraud network.
The role of National Travels in the matter is expected to become clearer once the company submits its response and supporting documents to the Commercial Tax Department. The case has attracted significant attention due to the alleged connection with a prominent political figure and the massive scale of the financial fraud under investigation.