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This Millionaire Businesswoman Arrested in Rs 10,000 Crore GST Scam: Shocking Details Inside



Millionaire Businesswoman Arrested in Rs 10,000 Crore GST Scam: Shocking Details Inside

NOIDA: The tentacles of the massive Rs 10,000 crore Goods and Services Tax (GST) fraud case have ensnared another key player. In a dramatic turn of events, a joint operation by Noida and Coimbatore police arrested a 40-year-old woman on Saturday. Suganya Prabhu, a Coimbatore resident and a successful metal manufacturing factory owner, stands accused of exploiting the tax system through a web of fake companies. This arrest marks a significant development in the ongoing investigation, raising the total number of apprehended individuals to 45.

Authorities believe Prabhu’s actions resulted in a loss of Rs 14.2 crore to the government treasury. “She’s suspected of setting up fictitious companies to claim input tax credits (ITC) that weren’t legitimate,” explained Deputy Commissioner of Police (Crime), Noida, Shakti Mohan Avasthy. Under GST, ITC allows businesses to claim tax credit on purchases made for further production or sale of goods or services.

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This arrest marks another step in the investigation that began in June 2023 when Noida police initially exposed the large-scale GST fraud operation. So far, 45 individuals have been apprehended in connection with the scam. Authorities have taken a strong stance against this organized criminal activity, with 33 of those arrested facing additional charges under the Gangster Act.

The investigation gained significant traction after it was discovered that the gang had fraudulently used a journalist’s PAN details to register fake companies in Punjab and Maharashtra. Details regarding a third attempted company registration remain undisclosed by the authorities.

Prabhu’s arrest underscores the rising concern surrounding GST fraud in India. The government has been actively implementing stricter measures to curb such activities and ensure transparency within the tax system. This case serves as a reminder of the sophistication of these fraudulent schemes and the lengths criminals may go to exploit the system.

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Here’s a quick recap of the key details:

  • Accused: Suganya Prabhu (40), Coimbatore resident and owner of a metal manufacturing factory.
  • Allegations: Creating fake companies to claim fraudulent input tax credits (ITC) under GST.
  • Estimated Loss to Government: Rs 14.2 crore
  • Total Arrests in the Case: 45
  • Charges:
    • Sections of the Indian Penal Code (IPC) pertaining to cheating, forgery, and criminal conspiracy for all 45 arrested.
    • Gangster Act charges for 33 of the arrested individuals.
  • Modus Operandi: Using stolen PAN details to register fake companies and claim undue tax benefits.

The authorities are likely to continue their investigation to uncover the full extent of the fraud and apprehend any remaining individuals involved. This case highlights the importance of vigilance and robust safeguards within the GST system.

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