Punjab's Finance Minister Harpal Singh Cheema on Friday, claimed that the state's GST Department has unearthed a massive bogus billing scam in Ludhiana, involving fraudulent transactions worth Rs 163 crore over the past two years.
"The investigation revealed that Monga Brothers (Unit-II), Budhewal Road, Ludhiana, was operating a complex web of fictitious firms, creating fake Input Tax Credit (ITC) and defrauding the state exchequer," said Cheema, according to an official statement.
Cheema, who also holds Planning, Excise, and Taxation portfolio, said the firm had made purchases from 60 bogus firms, which were either suspended, cancelled, or had made purchases from suspended or cancelled dealers.
The minister said the total turnover of these 60 firms is approximately Rs 1270 crore.
He said the Punjab GST Department conducted an inspection, search, and seizure under the provisions of the Punjab GST Act, 2017, at the business premises of Monga Brothers (Unit-II).
"Based on the investigation, the Taxation Commissioner, Punjab, ordered the arrest of the partners of Monga Brothers (Unit-II) under Sections 69 and 132 of the Punjab GST Act, 2017", said the Minister.
Asking the business community to cooperate with the department and pay due taxes, Finance Minister Cheema warned tax evaders of strict action by the law.
He reiterated the Punjab Government's commitment to curbing tax evasion and promoting a fair and transparent tax system.
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