Workers-as-directors GST scam: Cover-up is no more an option

The AntiCorruption Bureau ACB of Maharashtra has taken suomotu cognisance of middayrsquos report about a R150 crore scam involving Goods and Services Tax GST inspectors The agency will seek a report on the internal probe carried out by the vigilance wing of GST in the matter to conduct investigations under the Prevention of Corruption ActAs per the report the inspectors in question Amit Lalge and Gajanan Lad allegedly fraudulently cleared refunds for 40 shell companies run by 17 traders who had named contractual workers porters hotel waiters and drivers as their directorsAccording to the governmentrsquos rules the GST department should have immediately reported the fraud which this newspaper brought to light on September 26 to the policeGoods and Services Tax Bhavan in Mazagaon on September 25 PicAshish RajeVijay Patil additional commissioner of the ACB said ldquoAfter the midday report we received one more complaint regarding the alleged fraud We have taken cognisance of it The ACB will seek a report from the GST vigilance wingrdquoOn the basis of the report and complaint a proposal to initiate the inquiry into the matter was put up before the director general DG of the ACB According to highly placed sources the DG has directed to that officials seek an internal investigation report made by the vigilance wing in the matterThe fraud was detected in 2022 following which the vigilance wing was roped in to carry out a detailed probe Following indepth investigations one of the officers involved in the scam was busted a few months back If sources are to be believed the department has refrained from registering an FIR in the matter as several members of the top brass are involvedAccording to the investigation 16 traders from Ghatkopar and one from Kurla had been given nonrefundable returns of more than R150 crore The 16 have registration certificates attributed to only three addresses in Ghatkopar and all the addresses mentioned by the traders were of shops that they had rented and have an area of 200 to 300 square feet The shop owners were fictitious and documents were forgedAfter getting notified by the higherups on April 6 2022 the state tax commissioner formed an investigation committee under the leadership of the additional state tax commissioner Thane region The committee established that the 17 traders had made 40 refund applications for the financial year 20212022 valued at more than Rs 150 crore The applications were made under the category titled lsquoExports of goods without payment of tax and Inverted tax structuresrsquoThe investigation revealed that all the cases involving the traders from Ghatkopar had been assigned to Lalge who processed the applications made to the GST office and sanctioned the refunds The application of the Kurlabased trader had been processed by LadAs soon as the role of Lalge surfaced he was suspended in May 2022 while Lad was suspended in June this year Also a proposal has been sent to the government by the GST department to conduct a departmental inquiry under Maharashtra Civil Services Conduct and Appeal Rules 1979ldquoAfter going through the midday report we also received a complaint from a private person demanding a probe into the matter The complaint mentioned the report and asked what action had been taken by the ACB as the matter involves government officials and public moneyrdquo said an official from ACBldquoThis necessitated an inquiry into the matterrdquo he added2022Year fraud was detected