Pramesh S Jain
The Enforcement Wing (South Zone) of the Commercial Taxes Department,Government of Karnataka,has arrested a key accused in a massive interstate fake Input Tax Credit (ITC) fraud involving transactions worth Rs.410 crore.
The arrested accused 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 Tamilnadu.
His associate,Shaik Jakeer Hussain alias Basha, remains absconding after fleeing overseas.
According to officials,the case is an extension of an earlier probe into fake invoicing activities detected across Karnataka and Tamilnadu.
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 Rs.410 crore,with wrongful ITC claims estimated at Rs.102.5 crore.
Investigators described the modus operandi as highly organised,involving frequent creation and cancellation of GST registrations,constant change of mobile numbers and bank accounts, and operation through multiple layered entities functioning in isolated silos to evade detection.
Both accused are natives of Chittoor in Andhra Pradesh. While Tauqeer was residing in Bengaluru,Basha is believed to have been operating from Andhra Pradesh before escaping abroad.
Their anticipatory bail applications had earlier been rejected by the 69th Additional City Civil and Sessions Court in Bengaluru.
Tauqeer was apprehended while allegedly attempting to abscond following sustained surveillance and intelligence inputs.He was produced before the Special Court for Economic Offences in Bengaluru,which remanded him to 14 days of judicial custody.
Efforts are underway to trace and secure the presence of the absconding accused through appropriate legal channels.
The Commercial Taxes Department stated that it remains committed to dismantling Non-Genuine Taxpayer (NGTP) cartels through technology-driven enforcement and inter-state coordination, while ensuring a fair and transparent tax system for compliant taxpayers.
