Three businessmen arrested for GST tax fraud

Ludhiana

Three businessmen from Punjab have been arrested for evading Goods and Services Tax (GST) of ₹116.5 crore. The arrests were made by the Directorate General of GST Intelligence (DGGI) in Ludhiana. The businessmen owned six companies based in Mandi Gobindgarh, located in the Fatehgarh Sahib district. The firms involved are Bharat Steel Industry, Ramji Concast, A.K.M. Alloys, K.T.B. Alloys, Shree Salasar Balaji Steel Tubes, and Shree Salasar Steel Tubes & Company.

These companies made illegal sales worth ₹647.4 crore. They were producing billets and selling pipes. The DGGI’s investigation found goods worth ₹388.8 crore were sold without paying GST, leading to tax evasion of ₹69.8 crore. Additionally, the companies created fake invoices worth ₹258.5 crore. This led to another GST loss of ₹46.5 crore by wrongly claiming tax credits using fake companies.

Officials found strong evidence during searches. The employees and partners admitted the fraud in their statements. On May 2, DGGI arrested the three owners for their involvement in this large-scale tax fraud. A local court has sent them to judicial custody.

The DGGI works under India’s Ministry of Finance. It is the top agency to detect and stop GST frauds. It uses modern tools, data analysis, and a strong intelligence network to catch tax cheats. The agency continues to monitor illegal business activities and hopes this action will discourage similar crimes in the future.

The investigation remains open, and further action may be taken against others involved. Authorities said they are committed to fighting tax evasion and protecting government revenue.