In June, the Kerala GST department discovered input tax credit (ITC) fraud in the scrap industry, totaling Rs. 13 crore. On Thursday, Azhar Ali and Madavana Rinshad from Perumbavoor were finally detained in connection with the crime. According to the department, they created fake GST invoices worth Rs 125 crore and allegedly earned Rs 13 crore in illegal ITC.
Back then, the duo failed to respond to repeated notices from the department and went absconding. The Kottayam unit of the GST investigation branch arrested the two from near LuLu mall in Ernakulam after receiving reports that they were located nearby. Earlier, the Kerala High Court dismissed their anticipatory bail application. They were produced in the Economic Offences Court in Ernakulam.
In June, the homes of Azhar Ali and Rinshad were searched in the wee hours by GST inspectors and armed police officers. Authorities recovered several documents and five mobile phones connected to the fraudulent activities. They indulged in the crime under the guise of the sale of scrap. GST officials took the help of armed police after they received information that the suspects had connections to the hawala and narcotics cartels.
The GST department’s investigation section had already conducted an extensive preliminary investigation of the criminals. Eight administration units raided various establishments in 12 locations, and ten traders’ statements were recorded. This move came after Ali and Rinshad ignored the department’s request to register their accounts.
Back then, Ratan Kelkar, the state’s GST commissioner, warned against benami registrations and the filing of fraudulent invoices. It was also the first time the GST department had used armed police to aid in a search.
State tax officer for Kottayam C G Aravind, STO for Mattanchery Baby Mathai, STO for Alappuzha Rajagopal, and deputy commissioner (investigation branch) Johnson Chacko were part of the investigation team. The 14-member police team was led by KAP Battalion I Tripunithura assistant commandant Anson and sub-inspector Santhosh Kumar.
STO CJ Aravind said that the GST department is investigating the role of several other suspects. The accused used the ID and PAN card details of several others to transfer crores as ITC into their bank accounts and defrauded the government. Besides scrap dealers, the duo helped timber and areca nut dealers by raising fake invoices.
Perumbavoor is the hub of terror activities in Kerala. The Kerala police failed to find these criminals for almost five months, which points to severe lapses within our system. Now, their underworld connections have been forgotten. Their body language suggested they were at ease even after they were arrested. Such traits are similar to the PFI leaders detained en masse in September.
