Gujarat Police Arrest 14 in Landmark GST Evasion Case

In a groundbreaking development, Gujarat police have apprehended 14 individuals under the stringent GUJCTOC (Gujarat Control of Terrorism and Organised Crime) Act for their alleged involvement in a massive GST evasion scheme amounting to hundreds of crores of rupees. 

This marks the first GUJCTOC case in Gujarat related to an economic offense, signaling a significant crackdown on fraudulent activities impacting the tax ecosystem.

Legal Proceedings and Remand by Gujarat police:

The accused were presented before a special court in Rajkot by R R Singhal, Deputy Superintendent of Police of Bhavnagar city, where they were remanded to police custody for 16 days. 

Special judge RT Vachhani granted partial approval to the police application, considering the gravity of the alleged offenses and the need for extensive interrogation.

Nature of the Alleged Racket:

Special public prosecutor Tushar Gokani said the accused orchestrated a sophisticated scheme involving creating bogus firms through forged documents or fraudulent means. 

These entities were used to conduct transactions to evade GST payments amounting to significant sums. 

The investigation suggests a wide-reaching network operating across multiple districts, necessitating thorough scrutiny and interrogation of the accused.

Escalation to GUJCTOC and Syndicate Involvement:

Following revelations of the accused’s involvement in similar offenses across various districts over the past three years, authorities invoked sections of the GUJCTOC Act to address the organized nature of the criminal syndicate. 

Superintendent of Police Harshad Patel highlighted the syndicate’s modus operandi and the decision to escalate the case’s severity in response to its far-reaching implications.

Origin of the Investigation by Gujarat police:

The investigation stemmed from a complaint filed by Nirav Baraiya, a state tax inspector, based on findings during a raid at the residence of Amin Kitavala in Bhavnagar. 

The discovery of transaction records and evidence of tax evasion prompted further scrutiny, leading to the uncovering of a complex network engaged in fraudulent activities.

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