Arrests in ₹176 Crore Input Tax Credit Fraud Case

Ministry of Finance: Recent Arrests in Input Tax Credit Fraud Case

On August 25, 2021, the Directorate General of GST Intelligence (DGGI) Gurugram Zonal Unit (GZU) in Haryana announced additional arrests tied to a significant input tax credit (ITC) fraud involving a total of Rs 176 crore. The fraud was initially linked to Shri Sanjay Goel, proprietor of M/s. Redamancy World, and Shri Deepak Sharma, the de facto controller of several non-existent firms, both of whom have already been arrested.

Key Individuals Arrested

Recent investigations have identified two more individuals as key participants in this fraudulent scheme:

Shri Manish Modi:
- Profession: Chartered Accountant
- Residence: Pitam Pura, New Delhi
- Allegations: Modi is accused of managing a fraudulent operation involving fake firms, specifically M/s. Nivaran Enterprises and M/s. Panchwati Enterprises, through which he unlawfully passed on fake ITC amounting to Rs 36 crore. Evidence suggests the possibility of additional firms under his control for similar fraudulent activities. Ongoing investigations are being conducted to uncover more details.
Shri Gaurav Agarwal:
- Position: Partner of M/s. Agarwal & Company (authorized dealer of ITC)
- Allegations: Agarwal has been implicated in the fraudulent scheme for passing on fake ITC totaling Rs 15 crore, inclusive of GST and Cess. He has also been arrested for similar charges.

Legal Proceedings

Both Shri Manish Modi and Shri Gaurav Agarwal were arrested on August 23, 2021. Following their arrest, they were presented to the Duty Metropolitan Magistrate, Delhi, who ordered their judicial custody for 14 days. The fraudulent transactions involving fake ITC are significant, with Rs 36 crore attributed to Modi and Rs 15 crore to Agarwal.

Ongoing Investigations

The DGGI continues to conduct thorough investigations into this case, seeking to uncover any further fraudulent activities and the possible involvement of additional individuals or entities.