Bengaluru, Jul 9 (PTI) A Rajasthan-based individual was arrested in connection with a major bogus billing and tax evasion racket that allegedly caused substantial loss to the state's revenue, the Karnataka Commercial Taxes Department said.
Officials from the Enforcement South Zone and Intelligence Wing of the Commercial Taxes Department, with assistance from the Bengaluru East Police, took into custody Kailash Villoy, a resident of Jalore district in Rajasthan. The arrest was made in Bengaluru, a statement issued by the department said.
According to the department, Villoy had opened multiple bank accounts using fake Aadhaar cards and obtained goods and services tax (GST) registrations in their names. These were then used to issue fake tax invoices running into hundreds of crores of rupees.
The invoices reportedly facilitated clandestine transportation of metal scrap and helped traders in Karnataka and other states unlawfully claim input tax credit (ITC), thereby evading taxes.
The department stated that Villoy's actions were part of a larger network aimed at exploiting the input tax credit mechanism by issuing fraudulent invoices without actual movement of goods.
The Bengaluru Special Economic Court has handed over the accused to the department on warrant for further investigation.
The Commercial Taxes Department is continuing its probe and analysing the case from multiple dimensions.
Citing the arrest, officials stated that strict enforcement measures reaffirm the government's commitment to ensuring tax compliance, upholding justice, and safeguarding the interests of the state and honest taxpayers.