The Enforcement Wing (South Zone) of the Commercial Taxes Department, Government of Karnataka, arrested a key accused in a massive inter-State fake input tax credit (ITC) fraud involving transactions worth ₹410 crore.
The arrested, Mohammed Tauqeer alias Mohammad, 42, is alleged to be one of the masterminds behind a network of bogus firms that generated and routed fraudulent ITC across Karnataka, Andhra Pradesh, and Tamil Nadu. His associate, Shaik Jakeer Hussain alias Basha, remains absconding.
According to officials, the case is an extension of an earlier probe into fake invoicing activities detected across Karnataka and Tamil Nadu. Subsequent investigation revealed that the duo had floated multiple shell companies and issued fake tax invoices without actual supply of goods, enabling ITC claims.
The accused allegedly routed the fake ITC through a chain of entities, including previously arrested operatives, and eventually to contractors and traders, who used the ineligible credit to offset tax liabilities instead of making cash payments, causing significant loss to the government exchequer.
Officials said the racket involved fraudulent transactions worth ₹410 crore, with wrongful ITC claims estimated at ₹102.5 crore.
