Chaiwallah owns firm with Rs 12-crore turnover

Jaipur: Sandeep Agarwal, who is considered the mastermind of a gang active at the national level, was apprehended by the Jaipur team of the Directorate General of GST Intelligence in connection with several tax evasion cases here on Wednesday.

Agrawal set up bogus firms under the names of tea sellers, his domestic helps, neighbours and labourers to evade taxes and make fraudulent ITC (Input tax credit) claims. The department has taken all of these people under the purview of the investigation and has asked them to pay the tax so that all they come forward to reveal more details about the gang.

Fraudulent GST transactions worth Rs 375 crore

The Intelligence team disclosed that Rs 58 crore were stolen through tax evasion on the basis of fraudulent transactions worth Rs 375 crores. Along with Sandeep Agarwal, Pankaj Khandelwal from Jaipur, and a man named Ramkumar were also arrested in relation to the fraud and sent to jail on the order of the Economic Offences Court.

Long list of bogus firms

Tea seller: The gang created a bogus firm named JMD Associates in the name of Mahesh, a tea seller, and after setting up GSTIN, made transactions of Rs 12.83 crores and stole Rs 2.5 crores in taxes. Mahesh said that he has no links to the firm.

House helps: The gang also made transactions of Rs 27 crores by making bogus firms in the name of three of their house helps in Ghaziabad. The gang is believed to have stolen Rs 3.76 crores in taxes.

Neighbours and relatives: The gang’s mastermind, Agarwal, carried out frauds under the name of Jagdish Kandal,  his neighbour in Ghaziabad, and several relatives.

A firm in the name of Arif, a resident of Chaumu, was also revealed in the investigation. Another firm created in a name of Jodhpur resident Vipul also had false names and address.

Boss and big boss

Department officials said that gang members used to send coded messages to each other The amount in rupees was written in kilograms and the names of gang members were saved as ‘Boss’ or ‘Big boss’.