Five Arrested in ₹5.5 Crore GST Fraud as ACB Attaches Rohini Flats
The Anti-Corruption Branch (ACB) has arrested five people, including three Delhi government tax officials, over an alleged ₹5.50 crore GST refund fraud that involved the purchase of two flats in Delhi's Rohini area. The arrests, which were reported on Tuesday, came after a complaint from the Department of Trade and Taxes triggered an investigation into irregular refund claims.
The arrested government officials have been identified as GST Officer Ajit Singh, GST Inspector Atal Bhardwaj, and Lower Division Clerk Himanshu Malik. Two private individuals, Ajay Kumar and Ashish Mishra, were also arrested by the ACB for their alleged involvement in the conspiracy.
According to the ACB, the fraud caused a wrongful loss of approximately ₹5.50 crore to the government exchequer. The investigation revealed that the refunds were sanctioned in direct violation of statutory provisions and prescribed departmental procedures.
The ACB stated that mandatory verification and financial scrutiny were completely bypassed. Instead, the accused allegedly used fabricated documents and fake photographs to process and approve the refund claims in an unusually short period of time.
The probe found that the then GST officer, Ajit Singh, allegedly approved the refund claims without carrying out the mandatory scrutiny. At the same time, GST inspector Atal Bhardwaj allegedly uploaded fake photographs and submitted false verification reports without physically inspecting the business premises, thereby facilitating the fraud.
A financial investigation by the ACB further uncovered the layering of the fraud proceeds through multiple bank accounts and shell entities. The probe revealed that a part of the alleged proceeds of the crime was transferred to family members of one of the accused government officials. These funds were subsequently used to purchase two flats in the Rohini area of Delhi.
Following a competent court's order, the ACB attached the two Rohini properties under Section 107 of the Bharatiya Nagarik Suraksha Sanhita. The agency noted that this is the first time it has attached properties purchased using the proceeds of crime under this provision.
The ACB added that the investigation is still ongoing. Officers are working to identify other individuals involved in the conspiracy, trace the remaining proceeds of the crime, and analyze digital and financial evidence.
