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by IANS |
Marwahi (Chhattisgarh), July 3 (IANS) In a significant breakthrough, the Madhya Pradesh Economic Offences Wing (EOW) has arrested coal trader Zafar Sheikh from his residence in Marwahi, Chhattisgarh, in connection with a staggering Rs 512 crore GST (Goods and Services Tax) fraud.
The arrest is part of a larger investigation into bogus coal transactions and financial irregularities involving numerous fake companies.
The arrest took place during a morning raid by a seven-member EOW team from Bhopal.
Sheikh was taken into custody and transported to Bhopal for further interrogation. He is accused of generating fake invoices and manipulating coal supply records through various firms, which were registered in Jabalpur but operated across state borders.
The prime accused in the scam, Vinod Kumar Sahay, was arrested earlier from Ranchi, Jharkhand.
Authorities believe that Sheikh collaborated closely with Sahay’s network to issue fraudulent bills to industrial units. These transactions, investigators found, had no basis in actual coal supply -- there were no transportation logs, stockpiles, or delivery receipts.
The FIR was registered in Bhopal under relevant BNS sections.
Preliminary findings suggest that the duo used over 23 shell companies and 150 bank accounts to move fictitious funds, claim bogus GST credits, and launder money under the guise of coal trading.
The fraud has sent shockwaves through the coal trade and tax departments across Madhya Pradesh, Chhattisgarh, and Maharashtra.
The Investigative agency believes the financial trail may extend further, potentially involving additional companies and political patrons.
The Enforcement Directorate is expected to join the probe soon, and further arrests are likely.
Officials have described the case as one of the largest GST evasion scams in recent memory and a serious challenge to regulatory systems overseeing interstate commodity movement.
Investigators suspect that several more coal traders from Madhya Pradesh and Chhattisgarh may be linked to the scam.
The EOW is actively expanding its probe to track down additional individuals and companies believed to be part of the fraudulent network.
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