Key Points
- Investigation revealed a fake company registered in an auto driver’s name.
- Main suspect opened 246 fake GST firms, causing fraud worth Rs 5,000 to Rs 8,000 crores.
- Multiple arrests made, including those who helped with the scam.
- DGGI raided several cities and collected evidence.
- Kalavadiya has a history of similar crimes in Gujarat.
Looma News
The Directorate of GST Intelligence (DGGI) uncovered a major scam involving a fake company in Pune, set up under the name of an auto rickshaw driver. The fraud, estimated between Rs 5,000 crores and Rs 8,000 crores, came to light after DGGI officer Rushi Prakash filed a report at the Koregaon Park police station.
The main suspect, 50-year-old Ashrafbhai Ibrahimbhai Kalavadiya from Surat, Gujarat, allegedly created 246 fake GST firms. Others, including Nitin Barge, Faizal Mevalal, and Nizamuddin Khan, also face charges under various sections of the Indian Penal Code and the Information Technology Act.
The investigation started in October 2023 when suspicious transactions pointed to ‘Pathan Enterprises,’ claimed to be on the Pune Solapur highway, but no such business existed. This company was registered under Pathan Shabbir Khan Anwar Khan, an auto rickshaw driver from Bhavnagar, Gujarat, who was unaware of any registration in his name.
Further inquiries linked the scam to an ICICI bank account connected to Jeet Kukadiya, a private security guard who opened the account for the accused but never made any transactions. DGGI teams conducted raids in Pune, Mumbai, Rajkot, and Bhavnagar, leading to Kalavadiya’s arrest in March 2024, where they seized a lot of evidence, including phones, laptops, and bank documents.
Kalavadiya reportedly ran Pathan Enterprises and other fake firms without any real business, avoiding GST payments. He was arrested under sections of the Goods and Services Tax Act and is currently in custody.
Investigations are still ongoing, revealing that associates helped manage bank accounts and carry out fake transactions. Kalavadiya is said to have created fraudulent GST bills without any real business, committing about Rs 20.75 crores in fraud through Pathan Enterprises alone.
Deputy Commissioner of Police Smartana Patil confirmed the filing of the report and the ongoing investigation, noting that Kalavadiya has a background of involvement in fake GST billing cases in Gujarat.
