Ludhiana: Six firms found ‘evading’ ₹116.5-cr GST; 3 held

The Directorate General of GST Intelligence (DGGI), Ludhiana, claimed to have uncovered a massive scam involving six Mandi Gobindgarh-based business entities engaged in “illegal sales” amounting to ₹647.4 crore, leading to a staggering ₹116.5 crore in GST evasion. Three individuals, including a prominent industrialist and his two sons, have been arrested, officials said.

The firms involved include Bharat Steel Industry, Ramji Concast, AKM Alloys, KTB Alloys, Shree Salasar Balaji Steel Tubes and Shree Salasar Steel Tubes and Company. These businesses are engaged in manufacturing steel billets and trading steel pipes.

According to the DGGI, investigations revealed that the entities were involved in the clandestine removal of goods worth ₹388.8 crore, evading GST to the tune of ₹69.8 crore. In addition, the entities generated fake invoices worth ₹258.5 crore, further leading to ₹46.5 crore GST fraud through illegal input tax credit (ITC) claims using fictitious firms.

During raids and investigations, the DGGI seized several incriminating documents and materials. These findings were corroborated by voluntary statements made by the partners and employees of the entities, who admitted to fraudulent activities, the DGGI mentioned in a statement.

The DGGI arrested Sanjeev Kumar Bansal and his sons Karan Bansal and Sovit Bansal, who were found to be the key individuals managing and controlling the fraudulent operations of these companies, officials said. All three have been remanded to judicial custody.