Business

OMG! The company was opened even after 7 years of death, 550 dummy companies were running from a small room

Photo:FILE

Fake 550 firms

Highlights

  • Running more than 550 dummy companies from a small room
  • Some dummy companies were opened 7 years ago by dead people
  • The turnover of these dummy companies was more than 800 crores.

There are many stories of criminals in India, now another link is attached to it from Surat. Here such a vicious crook has been caught, who was running more than 550 dummy companies from a small room and their business was more than 800 crores. Some of these companies were in the name of people who had died about 7 years ago.

Five people of a vicious gang running around 550 dummy companies have been arrested from a room in Gujarat’s Surat for forgery of goods and services tax (GST) input tax credit (ITC) worth crores. Indore’s Central Goods and Services Tax Commissionerate with the help of cyber squad of Madhya Pradesh Police arrested five gang members from Surat on May 25.

company in the name of the dead

Investigating officers also found a dummy company in the name of a person who had died seven years back. A large number of incriminating documents, mobile phones, SIM cards, seals, letter-pads etc. have been recovered from the possession of the gang along with the details of dummy companies, the official said. He said that detailed investigation and action by different government agencies is going on in the matter and the number of frauds carried out by the gang in multiple layers may increase.

Investigation of fraudulent business of 800 crores

A total of Rs 800 crore business done by the gang in the name of about 550 dummy companies is under investigation. According to the police, through this business shown only on paper, ITC of more than Rs 100 crore of GST was fraudulently obtained and sold to other companies taking ‘commission’.

big mess in a small room

A senior official privy to the investigation of the case said, “Around 550 dummy companies were being run by the gang from a room in Surat and fraudulent business worth crores of rupees was being done through them. We found hardly four tables and chairs kept in this room and we found that there can be a maximum of six people sitting and working.

how used to do fake work

Identity documents of people from Gujarat, Maharashtra and Madhya Pradesh were illegally procured through another gang to register dummy companies in the GST system. “The names and addresses of documents ranging from daily wage laborers from poor sections to an IPS officer who retired from the post of Director General of Police of Madhya Pradesh were illegally used to open dummy companies,” the official said. These people were not even aware that on the basis of their documents, fraudulent business worth crores of rupees was being done.

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Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
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