Officials from the CGST in Delhi have arrested a man suspected of defrauding the government of Rs 94 crore in input tax credits.
Following data analysis and intelligence collection, officers from the CGST Delhi North Commissionerate arrested Krishan Kumar, who was involved in developing and running fake firms using identity documents of his friends/employees. According to the investigation so far, he set up five fake companies, including M/s Shradha Traders, M/s Anshara Impex, M/s Vijeta Enterprises, M/s SM Agencies, and M/s Deepasha Sales, to issue goods-less invoices for products including butter, ghee, and oil, and pass on inadmissible Input Tax Credit (ITC) of Rs. 94 crore. Incriminating documents such as ATM cards, signed cheques, bank documents, stamps of these dummy firms, including the stamp of the transport company as stated in the e-way bills of the fake firms, and outer packets/cases of SIM cards of mobile phones used for firm registration were discovered during the search of his residence.
As a result of the above, Krishan Kumar has committed an offence under Section 132(1)(b) of the CGST Act, 2017. As a result, on March 25, 2021, he was arrested under the provisions of Section 69(1) of the CGST Act, 2017. The duty Magistrate sentenced him to 14 days in judicial detention. During the fiscal year 2020-21, the CGST Delhi Zone made a total of 40 arrests in various cases involving GST evasion totaling Rs. 5,310 crore.
The Securities and Exchange Board of India (SEBI) has released a new registration system for the transfer of company through intermediaries.
SEBI, the capital markets regulator, announced a new registration process for licenced intermediaries moving business to other legal entities. The regulator mentioned in a circular that it has been receiving registration applications for the transfer of business from one legal entity to another legal entity that is a SEBI registered intermediary. In this regard, SEBI explained that if the transferee is not registered with the market’s watchdog in the same capacity, it will not be able to obtain a new registration from the regulator before the transfer of company.
If the business is transferred through regulatory process or non-regulatory process (as per private agreement /MOU pursuant to commercial dealing/private arrangement) irrespective of whether transferor continues to exist or ceases to exist after the said transfer then SEBI will issue a new registration number to the transferee that is different from the transferor’s registration number. Prior approval and new registration will be obtained in the event of a change of control in both regulatory and non-regulatory processes. The same registration number would be maintained when issuing a new registration to the same legal entity due to a shift of power.