IDs of many Indore residents used in Rs. 700 crore GST fraud: Police

Indore: The identity documents (IDs) of many Indore residents may have been obtained by three Gujarat residents accused of a Rs. 700 crore Goods and Services Tax (GST) fraud, police officials in Madhya Pradesh have said.
 According to a report published in Hindustan Times, the three suspects have been booked for running an elaborate racket that fraudulently claimed what is known as an input tax credit by registering 500 fake companies using the stolen identity and address documents.
“The cyber cell officials suspected that data of 80% of Indore’s population has been compromised as they used electricity bills of common people for registering these companies,” said a senior police officer on anonymity.
The police have identified the accused as Suleman Kareem, 29, Shamsuddin Ameen Bodhani, 33 and Firoz Khan, 36, all residents of Gujarat, following a detection of the fraud by the Central GST intelligence.
In this case, the suspects created a network of fake companies that generated invoices to show non-existent input taxes to have been paid. The data stolen was meant to register the fake companies, Hindustan Times report further added.
 “In our investigation, we found that people whose electricity bills were used had never registered any firm on the GST portal. The accused used the unique number of the electricity bill to register the fake company. We tracked the digital footprint of the input credit transactions to find the accused,” the MP police officer said.

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