The Additional Sessions Judge in Ahmedabad, BH Kapadia rejected the bail plea of Tahir Mehmoodbhai Rajaiwala, an accused in fake invoice scam stating, “Such an act has triggered a grave concern to our Indian economy. The accused has an important role in this crime. These kinds of crime cannot be taken lightly.”
Rajaiwala was held by the sleuths of the State Goods and Services Department (SGST), was accused of floating 96 fake firms, presenting billing status worth INR 1228 crore and claiming an ITC (Input Tax Credit) of INR 221 crore illegally.
Earlier, the State Goods and Services Department had received clues regarding his connection in a state-wide scam after conducting raids at two of his local firms- ‘Redex Enterprises’ and ‘Redex Enterprise Private Limited’.
During the investigation, it was discovered that Tahir Rajaiwala had traded many fake bills to its countless traders to claim Input Tax Credit unlawfully and caused state exchequer a loss.
Input tax credit is the tax paid by the buyer on purchase of Goods or Services.
However, the officials of SGST had managed to recover nearly INR 19 crore of the fraudulent amounts.
It was reported that nearly 40 firms were named after the accused.
Redex Enterprise Private Limited is a private company limited by shares. It is registered with the Registrar of Companies, Ahmedabad on January 10, 2019. It is a non-government company with an Authorised Capital of INR 1, 00,000 and a paid up capital of INR 1, 00,000.
According to the records of the Ministry of Corporate Affairs (MCA), Redex Enterprise Private Limited’s last Annual General Meeting (AGM) was held on Sep 30, 2019, and its last Balance Sheet was dated on March 31, 2019.
The Corporate Identification Number (CIN) of Redex Enterprise Private Limited is U93090GJ2019PTC106011 and its Registration Number is 106011.
Arvind Kumar, Prem Shankar Tiwari and Khurshid Khan are the two associated directors of the enterprises.
The Special Public Prosecutor for State Goods and Services Tax had told the court that the company was operating across 14 Indian states.
The accused has traded 14, 000 manpower supply across India. But this wasn’t the case in reality.