Bihar Police Investigates Rs 40 Crore GST Fraud Involving Private Tutor’s PAN Card
Muzaffarpur, Bihar: Bihar Police have launched a thorough investigation into an alarming Rs 40 crore GST (Goods and Services Tax) fraud following a complaint from a local private tutor, Rahul Kumar, whose PAN card was misused to procure fake GST numbers for firms based in Delhi and Kerala.
Rahul Kumar, a resident of BMP-6 Durgapuri Colony in Muzaffarpur, filed an FIR at the Mithanpura police station after a startling discovery during his income tax return filing process. His lawyer informed him that two GST numbers had been issued using his PAN card, prompting Kumar to seek clarification from the GST office.
Upon visiting the GST office and consulting with Deputy Commissioner Satyendra Kumar Sinha, it was unveiled that a staggering Rs 40 crore in GST dues were attributed to Kumar’s name. This revelation has raised significant concerns about the extent of identity misuse and financial fraud.
Details of the Fraud
The fraudulent activities involved two GST numbers. The first GST number was assigned to a firm named Star Enterprises located in Kozhikode, Kerala. This firm reportedly deals in aluminum, brass, and copper sheets. The second GST number was issued to RK Traders in the Uttamnagar division of Delhi, a firm engaged in the dairy products business.
Kumar expressed his disbelief and distress, stating, “I have never applied for GST and do not even have a current account in my name. I earn my livelihood by giving tuitions to children.”
The investigation revealed that the same mobile number and email address were used to register both GST numbers, suggesting that the fraud was orchestrated by the same individual or organization.
Police Action
Ram Iqbal Prasad, the officer in charge of the Mithanpura police station, confirmed the registration of an FIR and the initiation of an investigation. He stated, “An FIR has been registered, and the investigation is underway. Trainee SI Mithun Kumar has been appointed as the Investigating Officer in this case.”
Previous Incidents
This incident mirrors a similar GST fraud case in Delhi involving Rs 64 crore. In that case, the documents of a mobile mechanic named Shubham from Maharaji Pokhar Mohalla were used without his consent. Shubham discovered the fraud while filing his income tax return and subsequently lodged an FIR at the cyber police station on September 20, 2023. The case is currently being investigated by Cyber Police Station In-Charge Seema Devi.
The Bigger Picture
These incidents highlight a growing trend of identity theft and financial fraud in India, particularly involving the misuse of personal identification documents like PAN cards. The misuse of PAN cards to generate fraudulent GST numbers not only causes financial and legal distress to the victims but also reflects significant loopholes in the verification processes of tax authorities.
The ongoing investigations by the Bihar Police and other authorities aim to uncover the perpetrators behind these fraudulent schemes and strengthen the system to prevent such incidents in the future. As digital transactions and documentation become increasingly prevalent, the need for robust security measures and vigilant monitoring is more critical than ever.
Conclusion
The case of Rahul Kumar is a stark reminder of the vulnerabilities in the current system and the need for enhanced security protocols to protect individuals from such fraudulent activities. The Bihar Police’s proactive steps in investigating the Rs 40 crore GST fraud reflect their commitment to addressing and curbing financial crimes in the state. Meanwhile, individuals are advised to remain vigilant and regularly monitor their financial and tax-related activities to detect and report any anomalies promptly.
