AI Generated Image
Directorate General of GST Intelligence arrested Kapil Chugh, the alleged architect of a ₹1,825 crore GST refund fraud, at Indira Gandhi International Airport after he returned from Dubai.
Officials confirmed that he had evaded investigation for months and ignored 22 summons before fleeing India.
The agency stated that Chugh orchestrated a sophisticated network alongside associate Vipin Sharma to exploit Input Tax Credit mechanisms and unlawfully claim refunds through zero-rated export transactions.
Investigators uncovered that the group created multiple shell entities using borrowed identity documents. These firms lacked genuine infrastructure, manpower, or business activity, yet processed large financial transactions centrally controlled by the accused.
The network generated fraudulent tax credits by issuing fake invoices without actual goods movement. It circulated these invoices across layered entities to fabricate trading trails and inflate turnover figures.
Authorities revealed that the syndicate falsely declared low-value tobacco goods as premium exports to claim inflated refunds. It supported these claims using fabricated transport documents and manipulated e-way bills.
Financial analysis showed circular fund movements and rapid cash withdrawals, indicating no legitimate commercial activity.
Officials also found that Chugh allegedly diverted around ₹11 crore from a bank by overstating export turnover and faces additional charges in other financial crimes.
Regulators described him as a habitual economic offender who exercised centralised control over the entire operation.
The arrest marks a significant enforcement action against large-scale GST fraud networks.
Authorities continue investigations to identify further links and dismantle the broader ecosystem enabling such financial crimes.
Also Read: PM Narendra Modi Pays Tribute To Adi Shankaracharya On Jayanti
To read more such news, download Bharat Express news apps
