Ludhiana, May 8: Ludhiana businessman Paramjit Singh has been arrested following a probe by the State Intelligence and Preventive Unit that uncovered a GST scam totaling Rs 15.56 crore. Finance Minister Harpal Singh Cheema declared that the director of API Plastic Recyclers Private Limited utilized a network of non-existent firms to generate fake input tax credit on transactions exceeding Rs 85 crore.
The minister affirmed that the department used technology, including FASTag toll data, to confirm that no physical movement of goods took place. He stated that the locations of the vehicles mentioned in the documents were completely inconsistent with the declared shipping routes.
“Our investigation has uncovered 407 highly suspicious vehicle movements involving fake ITC of over Rs 2.65 crore,” Cheema asserted. He also maintained that the search operation at the taxpayer’s premises led to the recovery of blank goods receipt books, which he declared were used to create false records of movement.
The inquiry further revealed the use of fraudulent debit notes to generate an additional Rs 5.79 crore in credits. Cheema noted that these documents contained blatant irregularities, such as matching tax and taxable values, which signaled a clear manipulation of records. He affirmed that many of the supplier firms involved had already been suspended or cancelled by authorities.
Singh was arrested under the Punjab Goods and Services Tax Act, 2017. Cheema declared that the state remains committed to taking strict action against those involved in fake billing rackets. He stated that the severity of the fraud makes the offense a serious, non-bailable matter, punishable by a fine and significant jail time.
