Court directs cops to form team to investigate GST fraud case

The district court on Saturday directed the police to form a special investigation team (SIT), comprising senior police officers, excise and taxation experts, and cyber experts to investigate the role of four employees of the excise department in the GST fraud case of 2016.

The four employees are accused of sharing passwords and other details to help two private companies fraudulently claim input tax credit by using a fake Form C, which is mandatory for interstate trade.

District and sessions judge RK Sondhi passed this order on Saturday while rejecting the bail application of one of the accused in the case, Hanish Taluja (27), an employee of excise and taxasharing tion department.

The case was exposed in end of 2016 following a probe by an SIT formed by the Gurugram police. Six people, including a charted accountant, a computer operator and a taxation officer were arrested in the case.

The court order stated, “When complete inquiry was done, it was found that there was serious lapse on the part of four excise and taxation officers who for the reason best known to them were their passwords and consequent issuing bogus registration certificates, which was to their knowledge and they never thought of protecting their password which shows that they were knowing that those are being misused by certain persons for illegal purposes [sic].”

It was alleged that some of the employees of the department shared their passwords with some bogus companies, which claimed input credit tax in the tune of ₹44 crore.

Public prosecutor Anurag Hooda said the department in its submission highlighted that fraud was committed with the connivance of its employees. “The court has directed to form an SIT for further investigation,” said Hooda, adding that a case was registered in August 2016 at the Udyog Vihar police station.

IN 2016, FOLLOWING A PROBE, SIX PEOPLE WERE ARRESTED FOR HELPING TWO BOGUS COMPANIES TO FALSELY CLAIM TAX CREDIT IN THE TUNE OF ₹44 CRORE