Biz Updates: 25009 fake companies fraudulently passed ITC worth Rs 61545 crore, 168 arrested
New Delhi| Central-state GST officials have detected 25,009 fake firms involved in fraudulently passing input tax credits (ITCs) worth Rs 61,545 crore in FY 2024-25. A total of 1,924 crore were recovered by withholding ITC during this period and 168 people were arrested. The ITC fraud cases detected by central and state GST officials revealed 42,140 shell companies during the two financial years 2023-24 and 2024-25. These companies committed ITC fraud of over Rs 1.01 lakh crore. In these two financial years, a total of Rs 3,107 crore was recovered by withholding ITC and 316 people were also arrested. Central and state governments and GSTN (Goods and Services Tax Network) have taken several steps to stop fake ITC claims, an official said. This includes providing intelligence, detecting fake registrations and preventing suspicious e-way bill activities. ITC under GST means taxes paid by businesses on purchases from suppliers. This can be claimed as credit or deduction while finally paying tax.
Gensol scam: Corporate ministry will take action after reviewing SEBI order
The Corporate Affairs Ministry on Monday said it will take necessary action after reviewing SEBI’s order against the company in the Gensol engineering scam case. The Securities and Exchange Board of India (SEBI) had last week banned the company’s promoter brothers Anmol Singh Jaggi and Puneet Singh Jaggi from the securities market for violating various cases. The order comes amid allegations of withdrawing loan amount from listed company Gensol Engineering for personal use. In this, concerns were raised over corporate governance and financial irregularities. The ministry said, it is reviewing the order of market regulator SEBI in view of the provisions of the Companies Act-2013. After this necessary action will be taken. Gensol Engineering had taken a loan of Rs 975 crore from institutions like IREDA and PFC to buy electric vehicles. However, only a part of it was used for this purpose. The rest of the money was spent by the promoters on personal use, including purchasing luxury apartments.
