GST scam: Noida Police begins action against absconding Delhi family after court order

Police here on Tuesday said they have initiated steps against three absconding members of a Delhi-based family on a court order, directing them to depose in connection with its probe into a multi-crore GST scam or face action.

If an absconding proclaimed offender fails to depose in court after CrPC section 82 is invoked, his properties are attached and subsequently sold off with the earnings getting remitted to government treasury.

Giving details of the case, a senior police officer said Sanjay Dhingra, his wife Kanika and their son Mayank, who own businesses and properties worth hundreds of crores, are accused of fraudulently claiming around Rs 60 crore in input tax credit from the government.

It is part of the "GST scam" which came to light in June 2023 and pertains to revenue loss to the exchequer through input tax credit being claimed by thousands of bogus companies floated using forged documents.

Police investigations have shown involvement of bogus firms and transactions of around Rs 10,000 crore from them, and so far over two dozen people have been arrested in the case, according to officials involved in the probe.

Deputy Commissioner of Police (Crime) Shakti Mohan Avasthy on Tuesday said the three members of the family "are accused in the GST scam and the local court had issued orders for action against them under CrPC section 82 (declaration as absconders) on which the Sector 20 police station officials have initiated action." 

"They are masterminds of the case who are absconding and recently a non-bailable warrant was also issued against them. In future, action will be taken against them under CrPC section 83 (attachment of property) also," he said.

The family has duped the government of around Rs 60 crore by fraudulently claiming input tax credit on behalf of bogus companies. Based out of the Punjabi Bagh area of Delhi, the family owns businesses with their assets running into hundreds of crores, the officer told PTI.

The police said an FIR in connection with the case was lodged at the Sector 20 police station of Noida under Indian Penal Code sections 420 (cheating), 467, 468, 471 (all related to forgery) and 120B (party to criminal conspiracy).

In February, the Noida police attached assets of approximately worth around Rs 12 crore of gang members involved in the GST scam and it includes their immovable properties at multiple locations in Delhi.

The case had come to light in 2023 after thugs had applied for registration of bogus companies by fraudulently using PAN details of a journalist and got two firms registered -- one in Punjab and the other in Maharashtra -- while the request for a third in Delhi was rejected by the GST authorities.