Acting of a specific intelligence developed, the officers of Hq. Preventive Unit of Central GST, Belagavi Commissionerate have busted a Fake GST invoice racket of value of Rs. 132 Crore involving fake Input tax Credit of Rs. 23.82 Crore and arrested Shri Naqeeb Najeeb Mulla, Proprietor of M/s. Federal Logistics & Co. GSTIN- 29EZEPM3298F1ZW on 10/07/2024 under the provisions of Section 69 of CGST Act, 2024. Naqeeb Najeeb Mulla, Belagavi was involved in availment and passing on fraudulent Input Tax Credit by way of issuance of fake invoices without actual supply of goods/services.
Naqeeb Najeeb Mulla, a tax consultant by profession has also created a fake proprietary firm named as M/s. Federal Logistics & Co. GSTIN- 29EZEPM3298F1ZW. He was handling the filing of returns and other GST related issues of multiple firms and is involved in declaring the manipulated GST Returns.
The modus operandi used by Naqeeb Najeeb Mulla was to collect Cash payments from his clients for discharging monthly GST liabilities but used the same for his own personal interests leading to embezzlement. Further, he discharged the GST liabilities utilising fake ITC passed on through his own firm or through other firms in his control.
Upon interrogation and confrontation with the relevant records and statements of the affected clients, Naqeeb Najeeb Mulla admitted to siphoning off cash amounts by forging/editing monthly GST Returns.
The CGST officers of Belagavi CGST arrested Naqeeb Najeeb Mulla under the provisions of Section 69 of the CGST Act, 2017 on 10/07/2024 as he had committed an offence under Section 132(1) (b) and 132(1)(c) of the CGST Act, 2017.
After his arrest, the accused Naqeeb Najeeb Mulla was presented before the Hon’ble Judge of JMFC II Court, Belagavi, wherein the Magistrate has remanded the accused to judicial custody for 14 days.