Paper fraud was going on in Coal City, when officials raided it, a scam worth Rs 12 crores was exposed:

News India Live, Digital Desk: People know Dhanbad for the shine of its mines and coal, but nowadays there is a lot of talk of a ‘black game’ here. This is not a game of coal, but of fraud worth crores of rupees on paper. The GST Investigation Department has busted a gang that defrauded the government of Rs 12 crore in no time.

How did such a big theft come to light?
Actually, this whole matter came to light when GST officials got information about some suspicious transactions. When the needle of investigation moved forward and the team of officers reached the addresses where according to the papers there should have been big offices and shops, the officers were also stunned to see the scene there. In reality, no work was taking place at the addresses where goods worth crores were being bought and sold.

Shell Companies
To put it simply, ‘fake firms’ were behind this game. The fraudsters had got GST registration done in the name of some fictitious companies. Without selling any genuine goods, these companies were just issuing fake bills. The biggest benefit they got was in the form of ‘Input Tax Credit’ (ITC). That is, demanding back from the government the money which they had never paid as tax.

Even the officers lost their senses
In the initial investigation, this theft has been estimated to be around Rs 12 crore. Such tax evasion in business hubs like Dhanbad has alerted the administration. Officials believe that some professional syndicates may also be involved in this, who lure businessmen into such fraud with the lure of paying less tax or getting ‘fake refund’.

Now what will happen next?
GST department has given instructions to take strict action. At present, those suspicious accounts are being sealed and efforts are on to reach the masterminds. Real and honest businessmen of Dhanbad are also a little worried by this news because such incidents affect the image of the entire business community.

This case reminds us that even though everything has gone online in the digital age, miscreants are still looking for ‘loopholes’. The administration is now preparing to take even more strict steps.

What do you think?
Do you think only online documents are enough, or only physical verification from time to time can stop such scams worth crores? Please give your opinion in comments