The DGGI investigation into a massive tax evasion scheme began in October 2023, when officials uncovered suspicious transactions from a fake firm called Pathan Enterprises. The firm, registered under the name of an auto rickshaw driver with no knowledge of the company, was just the tip of the iceberg. Further digging revealed a web of fake GST firms tied to the same mobile number and email, as well as a bank account under a false name.
Raids were conducted across multiple cities, leading to the arrest of a key player, Kalavadiya, at a hotel in Mumbai. The DGGI seized various electronic devices and documents linking him to the operation of the fake GST firms. It was discovered that Kalavadiya’s network was generating fake GST bills without actually conducting any real transactions, resulting in significant tax evasion.
The investigation also uncovered the involvement of several associates who played different roles in the scheme, from managing fake accounts to facilitating cash transactions. The network of 246 fake GST firms, including Pathan Enterprises, is believed to have evaded taxes on transactions worth billions of rupees over a period of several years.
Deputy Commissioner of Police Smartana Patil confirmed the registration of an FIR in connection with the case, with ongoing efforts to dismantle the extensive fake billing network. This is not the first time Kalavadiya has been involved in such fraudulent activities, as sources revealed previous arrests related to similar scams in Gujarat.
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