EOW cracks crores worth GST scam, 2 arrested

A trail of suspicious bank transfers, dummy firms and allegedly forged GST credentials led the Economic Offences Wing (EOW) of Delhi Police to arrest a Delhi-based chartered accountant and a businessman in connection with a GST/VAT fraud case involving transactions worth nearly `28.4 crore.

The accused, identified as Rajeev Kumar Parasar and chartered accountant Atul Gupta, were arrested on May 12 in connection with an FIR registered by the EOW in 2020 under charges of cheating, forgery, impersonation and criminal conspiracy.

According to police, the case came to light after complainant Yashashwee Sharma alleged that the GST/VAT credentials and documents of his firm, M/s Swastik Enterprises, had been fraudulently used without his knowledge to conduct suspicious financial transactions running into crores of rupees.

Police noted that multiple bank accounts linked to firms operating under the name of M/s Swastik Enterprises were used to route and layer large sums of money through a network of suspected shell entities.

Police said analysis of the accounts showed that money received from various firms was either immediately withdrawn in cash or transferred through RTGS and NEFT to other beneficiary accounts, allegedly to conceal the financial trail.

The EOW said the investigation revealed the role of dummy firms allegedly operated with the assistance of Atul Gupta and another associate, Prakash Gupta, who has since died.

Police alleged that GST returns and statutory compliances for the suspected firms were filed through Gupta’s CA firm, M/s Ashok Atul & Co., based in Chandni Chowk.

Officials said the accused allegedly opened and operated bank accounts in the names of dummy proprietors using misused GST and VAT credentials. These accounts were then allegedly used to circulate huge amounts without any corresponding genuine business activity. Police further alleged that GST dues and penalties linked to the suspected firms were deposited through personal accounts of employees and later reimbursed, raising suspicion of efforts to hide the actual beneficiaries of the transactions.

Rajeev Kumar Parasar had remained absconding and untraceable for a considerable period before being tracked down. Following their arrest, both accused were produced before a court, which granted police custody remand for further interrogation and recovery of incriminating evidence.