Rs 385-crore bogus billing scam of unearthed in Punjab

Chandigarh, Sep 15 (PTI) Punjab Excise and Taxation Minister Harpal Singh Cheema on Monday said his department registered two FIRs against seven individuals for their alleged involvement in a massive bogus billing scam involving fraudulent transactions of Rs 385 crore, leading to a tax evasion worth over Rs 69 crore.

Cheema said an FIR was registered against a firm and its two directors on September 12.

Investigation uncovered a complex network of linked bogus firms, including two more companies which were all engaged in large-scale fraudulent activities and the wrongful claim of Input Tax Credit (ITC).

"A physical verification of the declared business locations revealed that they were either closed or nonexistent, confirming the fraudulent nature of their operations. The firm is accused of fraudulent transactions amounting to Rs 310 crore, resulting in a tax evasion of Rs 55.93 crore", said Cheema while adding that the FIR in this case was lodged with the Senior Superintendent of Police of Fatehgarh Sahib.

Disclosing further, Cheema said in a separate action, another FIR was registered on September 9 against a firm and its three associates for their role in another major bogus billing scam.

The investigation revealed that the firm was issuing fake invoices without the actual movement of goods, thereby facilitating the wrongful passing and claiming ITC to beneficiary firms.

"Investigators cross-verified GST returns, e-way bill data, and conducted a physical verification of the premises, which exposed the fraudulent nature of the transactions. The firm is linked to fraudulent transactions worth Rs 75 crore, leading to a tax evasion of Rs 13.64 crore", he added.

In addition to these FIRs, the taxation department has intensified its field-level enforcement.

In a special three-day checking operation at Mandi Gobindgarh, State Investigation and Preventive Units (SIPUs) detained 108 vehicles for verification, the officials said.

Twenty-six of these vehicles have already been penalized with a cumulative fine of Rs 50 lakh, with proceedings for the remaining vehicles still underway.

This targeted drive focused on high-risk sectors like iron and steel, cement, and auto parts, sending a clear message that tax evasion will not be tolerated, they said.

Cheema said the FIRs registered against fraudulent firms and the large-scale checking drives demonstrate the seriousness of the state in protecting its revenue base.

He emphasised Punjab's zero-tolerance approach, which combines technology-driven monitoring with physical enforcement. PTI CHS NB NB