The Delhi zonal unit of the Directorate General of GST Intelligence (DGGI) on July 23 arrested the chief financial officer (CFO) of Urja Global (UGL) for allegedly availing input tax credit (ITC) of Rs 72 crore fraudulently.
Krishan Kumar Bansal, Director of Microlyte & CFO of Urja Global, along with Yogesh Goyal (Director Urja Global) and Amit Dua (Director of NYX India) were arrested on Friday for "knowingly committing offences" under Section 132(1)(b) and 132(1)(c) of the CGST Act, 2017 which are cognizable and non-bailable offences.
"On the basis of intelligence developed by the officers of Delhi Zonal Unit of DGGI, unique modus operandi was unearthed in a case of passing on of inadmissible ITC of Rs 72 crore," a source in the department told Moneycontrol.
"Such ineligible ITC of services was accumulated and finally consumed on the composite supply of scrips to different importers located across the country," the source added.
The department had conducted searches at Delhi and Chennai on July 20.
Another source in the department told Moneycontrol, "During the investigation, it was revealed that Jetibai Gransons Services Pvt Ltd (JGSPL) has received solar panel (GST 5%), inverter (18%) & batteries (28%) from Microlyte Energy (P) Ltd (MEPL) worth Rs 232 crore involving ITC of Rs 55 crore. Urja Global, in turn, have shown line purchases of Rs 83.46 crore involving ITC of Rs 18.5 crore either from suppliers who do not have any inward purchases or from suppliers who are cancelled/non-existent. JGSPL has further supplied goods to NYX Industry India (P) Ltd and services to RIBS India worth Rs 210 crore involving ITC of Rs 38 crore."
In the investigation, the department has found that the majority of the initial suppliers of goods and services and the final recipients of goods were found to be non-existent."Directors of MEPL, NYX and UGL have admitted their offence and accepted in their statements that there was no real supply of goods and services, and the web of paper transactions was created only for increasing their turnover and utilisation of credit on their outward supply at Chennai. The total recovery so far is Rs 20.50 crore," the source added.