BENGALURU: The Bengaluru unit of the Directorate General of GST Intelligence (DGGI) arrested a 24-year-old businessman Tuesday for his alleged involvement in a massive fraudulent input tax credit racket, with transactions exceeding Rs 400 crore.Mohammed Kamran, a resident of Bannimantap Layout, Mysuru, was apprehended upon his arrival from Mumbai at Kempegowda International Airport. Authorities seized six mobile phones and a laptop from him.A manhunt is under way for Kamran’s father, Akram Pasha, who, along with Kamran, fled Mysuru after DGGI officials raided their properties on Sept 10. “The coordinated raids spanned 13 locations—three in Bengaluru and 10 in Mysuru—including houses, offices, and warehouses. These operations uncovered a complex network of interlinked entities allegedly involved in fraudulent input tax credit claims,” sources said.Akram Pasha runs ‘AK Steels’ and Kamran owns ‘MK Traders’ at Bannimantap and they deal in steel materials and scrap items. The two men were also accused of obstructing the DGGI personnel from carrying out their duty.In the complaint filed at Narasimharaja police station in Mysuru, six people, including Pasha, Kamran, Pasha’s wife Farzan Banu, and daughter Firdous Bhanu, were named. Firdous Bhanu fled the house in the middle of the raid, carrying the hard disk containing the CCTV footage of the raid, it stated.According to sources, DGGI discovered that the duo had issued fake invoices, and the GST of 18% from these invoices amounted to Rs 20 crore. “The case was detected on the basis of IP address analysis which revealed a network of suppliers and recipients engaged in issuing fake invoices without any actual supply of goods or services. A detailed investigation indicated that the trade involves transactions of over Rs 419 crore of fraudulent input tax credit availment and Rs 469 crore of fake input tax credit passing on,” sources added.
