Solapur, Maharashtra (India): In a significant breakthrough in the fight against GST fraud, the Directorate General of GST Intelligence (DGGI) has arrested a Solapur-based lawyer, Sajid Ahmed Sheikh, for orchestrating a large-scale fake GST invoice scam worth over Rs. 100 crore. This high-profile case has sent shockwaves across the business and legal community.
Fake Companies Created to Illegally Claim Input Tax Credit (ITC)
The investigation revealed that Sajid Ahmed Sheikh, a practicing advocate in Solapur, was the alleged mastermind behind a sophisticated GST fraud network. He is accused of setting up 30 fake companies using fabricated and forged documents. These bogus firms were then used to issue fake GST invoices for transactions that never occurred. The primary motive behind this operation was to fraudulently claim Input Tax Credit (ITC) and evade taxes.
According to officials, these fictitious transactions were shown on paper only, without any actual movement of goods or services. This method allowed beneficiaries to illegally claim ITC and significantly reduce their tax liabilities.
DGGI Conducts Raid and Seizes Electronic Evidence
Acting on credible intelligence, the DGGI launched a surprise raid on Sheikh’s office in Solapur. During the operation, several electronic devices, including computers, mobile phones, and digital storage units, were seized for forensic examination. Experts who analysed the devices reportedly found incriminating digital evidence pointing to the existence of a fake billing network and forged documentation practices.
Based on the strong evidence collected, the DGGI moved swiftly to arrest Sajid Ahmed Sheikh, who has since been remanded to 14 days of judicial custody. He is currently lodged at Kalamba Central Jail in Kolhapur.
Investigation Expands to 12 More Suspected Fake Firms
Following the arrest, the investigation has now expanded. Authorities have identified at least 12 additional suspected fake companies operating in and around Solapur that may be linked to this scam. The DGGI suspects that Sheikh was not working alone and that several individuals from trading, real estate, and jewellery sectors may also be involved.
Sources close to the probe suggest that the scam may have national-level links, potentially involving multiple states and tax jurisdictions. The DGGI is coordinating with other regional intelligence units to uncover the full extent of this fraudulent network.
Crackdown on GST Frauds Intensifies
This case underscores the government’s firm stance against GST evasion and fake billing rackets. With the introduction of advanced data analytics and AI-driven risk assessment tools, authorities are now better equipped to detect and dismantle such fraudulent activities.
The DGGI has assured that the probe will continue until every link in the scam chain is exposed, and all culprits are brought to justice. Business entities and professionals have been advised to ensure strict compliance with GST laws to avoid falling under the scanner.
Key Highlights:
- Scam Amount: Rs. 100+ crore
- Accused: Sajid Ahmed Sheikh, Solapur-based lawyer
- Modus Operandi: Creation of 30 fake companies using forged documents
- Purpose: Illegal claim of Input Tax Credit (ITC) through fake GST invoices
- Status: Arrested and sent to judicial custody
- Further Investigation: 12 more fake firms under scrutiny
Conclusion
This major fake GST invoice scam has once again highlighted the importance of vigilance, regulatory oversight, and digital audit trails in India’s indirect tax system. As the investigation progresses, more names are likely to surface. Businesses must remain compliant and cautious to avoid association with such illegal activities.
Stay connected for real-time updates on GST fraud cases, compliance tips, and legal news.