The Economic Offences Wing (EOW) of the state has arrested a man named Vinod Kumar Sahay, alias NK Khare on Friday, for his involvement in a large-scale GST input tax credit fraud, officials said. The accused, as per officials, allegedly created and circulated fake GST invoices, leading to revenue losses worth Rs 34 crore to the government.
Accused NK Khare
Sahay issued fraudulent GST challans
According to EOW officials, Vinod Sahay issued fraudulent GST challans without proper registration and used fake GST numbers to run a parallel business operation. These forged invoices allowed him and his associates to claim illegal input tax credits (ITC) while evading the actual GST payable to the state.
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Fraud spanned across key cities of MP
During interrogation, the accused confessed to operating a well-organised tax fraud ring across three major districts of the state, namely, Bhopal, Indore, and Jabalpur. His gang allegedly exploited innocent individuals by misusing their identity documents to set up fake firms and transfer crores of rupees in fraudulent ITC claims, causing significant losses to public revenue.
Complaint, tax reports blow the lid off the fraud
The scam came to light following a complaint by Pratap Singh Lodhi, and corroborating reports from Assistant Commissioners Vaishnavi Patel and Jyotsna Thakur of the Commercial Tax Department in Jabalpur. The reports flagged tax fraud Rs 34 crore, breach of trust, and criminal conspiracy involving multiple fabricated entities.
Sahay offered loan to obtain documents of individuals
The EOW officials learnt that between 2019 and 2020, Sahay approached individuals like Pratap Singh Lodhi, Deendayal Lodhi, Ravikant Singh, and Nilesh Patel in Jabalpur, offering help in securing loans. In doing so, he collected their Aadhaar cards, PAN cards, bank statements, land records, and utility bills under false pretenses. These were later used to commit large-scale financial fraud.
EOW is currently probing the extent of the network and verifying if other individuals or government officials were involved. Officials have confirmed that further arrests are likely in the case, as the investigation deepens
Conclusion
This case is a serious reminder of how tax fraud not only impacts government revenue but also innocent individuals whose documents are misused. If you’re a small business, startup, or freelancer, it’s crucial to stay GST-compliant and vigilant. For expert guidance on GST registration, return filing, and fraud prevention, consult the professionals at IndTax Filings today.
