A metal scrap dealer from Odhav, Ahmedabad was arrested on Friday by officials from the Directorate General of GST Intelligence (DGGI) after a ₹500 crore scam by a former MLA’s brother in the High-Speed Diesel (HSD) trade was unearthed.
The metal scrap dealer from Odhav, Ahmedabad, has been arrested for generating bogus bills and charging a 1% commission.
The scrap dealer, Pradhyumansinh Chavda’s name surfaced in the ongoing investigation into Ashapura Enterprise, owned by Hardevsinh Jadeja, brother of former MLA Jayrajsinh Jadeja. The mastermind behind the scam was also arrested by the police, and Chavda’s involvement became apparent during the investigation.
Following the revelation of the scam, Chavda was arrested by the police and sent to one-day remand.
Chavda, is accused of conducting a GST scam worth ₹50 crore by creating fake bills without any actual supply from his godown. He was generating fake bills and claiming fraudulent input credits from GST.
Chavda not only provided bogus bills in Ahmedabad but also across Gujarat, charging a 1% commission for creating these fake bills.
Police raided his business, Chetna Metals, and seized digital devices and bill books. These bill books revealed the names of dealers who had received bogus bills from Chavda. The Central GST team has now launched an investigation into these dealers.
The Central GST Intelligence team stated that metal scrap dealers often use the same method to generate bogus bills and claim input credits fraudulently.
Further investigation is ongoing, and more arrests are expected in connection with this scam.
What is the Ashapura Enterprise Scam?
The DGGI recently arrested the chartered accountant of Ashapura Enterprise
According to preliminary reports, the accused enterprise manipulated invoices for imported High-Speed Diesel (HSD).
Ashapura Enterprise, based in Rajkot, imported a large quantity of base oil through Mundra and Kandla ports. Authorities are investigating the recipients of this imported oil and the end-use of the supply chain to ensure compliance with legal and regulatory norms.