Posts Tagged ‘fraud’

Rs 1,200 Crore Fake GST Invoice Scam Busted: GST Dept unearths Rs. 200 Cr Fraud in Bengaluru, 3 Arrested: How is it possible in Digital world?

November 19, 2018

Rs 1,200Crore Fake GST Invoice Scam Busted: GST Dept unearths Rs. 200 CrFraud in Bengaluru, 3 Arrested: How is it possible in Digital world?

Iron and steel – evasion prone commodities: As for as Iron and Steel manufacture and the products thereof, there has been evasion since early 1940s. Even during the 2000, when, they were brought under Componded levy scheme as “evasion prone commodities,” manufacturers and traders could collude with each other and evaded thousands of crores of duty. About“deferred payment,” initially, no time limit was mentioned and thus, many manufactured, cleared without payment of duty under the guise of “deferred payment,” and disappeared! Ironically, at that time, there were loopholes created by the higher officers at the Board level, they could evade technically with the Rules created for the furnace and rolling mills. The builders also colluded with them, as they received goods, used up in the buildings and the cash paid converted into other transactions.  Scrap imports, high sea sales, substitution with local scrap, fake invoices, dealer invoices and such other modus operandi were used where the departments and allied organizations could do little,as most of the evaders escaped with the lack of evidences and loopholes in the Act and Rules.

MNCs, money flow and corruption: As the MNCshave concentrated in and around Bangalore and they have not been worried aboutfinances, skyscrapers, five-star hotels and infrastructure have been developedquickly from 2005 and they have been changed considerably. Thus, the governmentofficials, builders, contractors, building material manufacturers-suppliers,and all other connected persons and agencies played a crucial role in theinfrastructure developments, but also in all sorts of tax evasions. As the MNCsalways claim that they do not give bribes or commissions in any form to anyofficial or facilitator, the connected persons adapted and adopted variousmethods to pump the money, reaching them, so that the work has been going onsmoothly.

Cheap labour coming from North-Eastern India, etc: Bangalore,Hosur, Mysore and other places have been hubs for the MNCs involved in IT industries, electronics, automobiles, chemicals and pharmaceuticals etc., themobility of men and materials have been considerable and huge profits earned. Cheap labour has been / is being brought from north-Eastern India and from Bangladesh. The illegal infiltrators and the so-called migrants, even coming from Myanmar pose great challenge to locals in many aspects. They create new identities, voter cards, Adhar cards, PAN cards etc. Thus, the connected other businesses – Hotels, resorts, pubs etc., also thrived. As goods and services of all sorts are required, where, money is not an issue, every thing has been going on smoothly, as all have been taken care of. However, unfortunately,certain anti-national, terrorist and economic offences criminals joined and spoiled the commercial activities.

34 fake GST registrations – proves the inefficient programming: A scam involving fake GST bills worth Rs 1,200crore has come to light in Bengaluru[1]. The preventive wing of the south commissionerate of the GST busted the racket after two month long investigations[2].The fraudulent companies were engaged in trading of fake tax invoices for availing input tax credit[3]. This has been there, even before the introduction of GST. The accused were engaged in trading of iron and steel scrap through various companies[4].The kingpins of the scam have been identified as Suhail, Basha and Hafeezur. Significantly, in this industry, most of them  have been belonging to one particular group. Suhailand Basha floated 20 fake companies and registered them under the GST by giving fake names and addresses. While Basha had obtained 14 GST registrations in the names of his relatives and others, Suhail had obtained six[5]. They floated fake companies by giving made-up addresses, which made the investigation difficult[6]. Much relaxed provisions of the GST Act and rules, resulted in such manipulations. However, it has to be noted that each must have had 20 plus 14 fake PAN and Aadhar cards also. That implies either they [PAN and Aadhar] and the figuring persons in the cards have been either fake, fictitious or dead. Therefore, the government documents, in this regard have not been fool-proof and the criminals can exploit.

One computer producing fake GST invoices for thefake companies: All companies, however, in reality operated out of a single office and the bill were generated from a single computer[7]. This has been going on even in the case of Service tax, where just to enjoy the Rs20 lakhs limit, they used to float dozens of companies. The modus operandi involved floating fake companies, issuing fake GST invoices and generating e-way bills with fake vehicle registration details without actually supplying goods[8].The companies were created with an intent to fraudulently pass on input tax credit through these fake invoices. “A search was conducted on 12th of November, 2019. We recovered some incriminating documents from 25 locations and have nabbed three persons who we believe to be the key persons involved in generating these fake invoices,” said G Narayanswamy, IRS Commissioner of Central Tax, Bengaluru South. The accused have reportedly generated and issued tax invoices having turnover of about Rs 1,200 crore having a GST liability of Rs 200 crore. Their confessions have revealed that at least 18 iron and steel producers have availed these bills to claim input credit. Further investigations are underway. 

Proceedings initiated: Meanwhile the three accused have been produced in front of the Economic Offenses Magistrate, Koramangala, arrested under the provisions of the GST law and have been remanded under 14-day judicial custody[9].The GST officials have, till now, detected an evasion of Rs 200 crore of GST in the city, and recovered Rs 140 crore so far[10].The team of GST officials included Tej Kumar, deputy commissioner, Akshatha Shrinivas, assistant commissioner and led by G Narayanaswamy, commissioner, Bangalore South detected the fraud. Incidentally, when the officers work hard and book cases like this, when the cases go to court, most of the revenue cases are lost due to many inherent reasons. Non-cooperation of the evaders in furnishing documents, request interference of vested interests, collusion of some officers, consultants and others, delaying adjudication processes at different levels, improper presentation or lack of evidences and so on. Thus, in spite of the works of honest officers, cases are lost. Therefore, the involved should have some ethics, conscience and patriotism, so that the Indian society could be saved.

© Vedaprakash

16-11-2018.

UPDATED: NOVEMBER 14, 2018 23:35 IST


[1] CNN-News18, Rs 1,200 Crore Fake GST InvoiceScam Busted in Karnataka,Stacy Pereira | , Updated:November 15, 2018, 6:39 PM IST

[2] https://www.news18.com/news/india/rs-1200-crore-fake-gst-invoice-scam-busted-in-karnataka-1940385.html

[3] TaxScan, GST Dept unearths Rs. 200 Cr Fraud in Bengaluru, 3 Arrested, November 15, 2018 7:48 am| By : Tax Scan Team.

[4] http://www.taxscan.in/gst-rs-200-fraud-bengaluru-arrested/30672/

[5] The Hindu, GST fraud: Of 20 fake companies and one computer that generated fake bills, BENGALURU , NOVEMBER 14, 2018 23:35 IST, UPDATED: NOVEMBER 14, 2018 23:35 IST.

[6] https://www.thehindu.com/news/national/karnataka/gst-fraud-of-20-fake-companies-and-one-computer/article25499392.ece

[7] Financial Express, GST Bengaluru division busts fake invoice racket, By: FE Bureau | Published: November 16, 2018 2:45 AM

[8] https://www.financialexpress.com/economy/gst-bengaluru-division-busts-fake-invoice-racket/1383319/

[9] Deccan Herald, Rs 1,200 Crore GST frsud Busted in Benhaluru, Furquan Moharkan, DH News Service, Bengaluru, NOV 14 2018, 21:29PM IST, UPDATED: NOV 15 2018, 07:25AM IST

[10] https://www.deccanherald.com/business/multi-crore-gst-fraud-busted-702991.html

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Cardinal, bishop and other priests involved in land and financial scandals in Kerala (2)

February 2, 2018

Cardinal, bishop and other priests involved in land and financial scandals in Kerala (2)

Mar Alencherry - land scam-Malayalam U-tube

Pressure brought on the media to silence: Indian Currents, a 21-year-old publication by Catholic Church has withdrawn its cover story ‘Cardinal Sin’ “under obedience” by its chief editor Dr Suresh Mathew[1]. They had probed the land dealings by their internal team against Cardinal Mar Alencherry, the major archbishop of Syro-Malabar church. Indian Currents is a weekly news magazine published from New Delhi under the patronage of the Capuchins of Krist Jyoti Province of North India which gives in-depth analysis of day-to-day events in the socio-political and religious fields. Usually, Dr Mathew uploads the online version as early as Saturday morning when the hard copy hits the newsstand on Monday. Just when the matter was going to press this Saturday morning, he got a call from his provincial house to withdraw the cover story, an editorial by himself and the corresponding article written by Fr Jose Vallikkattu, a missionary priest belonging to the Missionary Society of St Thomas (MST). However, in this case, he had to face the Church differently.

India currents asked to withdraw article on Cardinal

The article published was withdrawn: “As a priest, I should be obedient. When I received a call and an email from the Provincial House asking me to wait until the internal probe is over, there is nothing I can do but withdraw at the last moment. So I have been forced to withdraw all the articles on Cardinal Alencherry’s land deals that have landed the Archdiocese of Ernakulam – Angamaly in a mess,” he told DC[2]. So Catholic priests have to cover up the crimes, sex and financial scandals and all in the name of god and save honour. But now he and his editorial team have been forced to come up with Bhima – Koregaon violence in Maharashtra where he has asked political activist John Dayal and senior journalist A. J. Philip to come up with articles on a war footing. His hard-hitting editorial states that “there is more to the episode than meets the eye”.  He recalls the words of Cardinal George Pell, Vatican’s prefect of the secretariat for the economy, who had opined a few years ago that the “next wave of the attacks of the Church could be for financial irregularities” which has since been proved right, though the expert committee’s probe is on. The detailed cover story states that “with the latest land row, however, the church has run itself the risk of losing the trust of its congregations. In fact, a church that was built on the solid foundation of unity is today divided in opinion”.

Cardinal George Alencherry - Ernakulam-Angamaly Archdiocese-3

The issue of black money also comes up[3]: A church panel probing land transactions in the archdiocese of Ernakulam has recommended action against Cardinal George Alencherry under Church and civil law for causing losses to the diocese. This is the first such recommendation — the case also involves black money — for a Catholic Church in India. Alencherry is among the Indian cardinals eligible to elect the Pope. The church panel report has been sent to Rome. Ernakulam archdiocese spokesman Father Paul Karedan admitted the probe report contained grave charges against Alencherry and said the report would have reached the Pope by now. “We have sent the report to Rome via the Apostolic Nuncio (Vatican representative) in Delhi,” Karedan said. Two others were also blamed for the land deal. Last month, January 2018, the archdiocese had appointed a six-member panel, comprising priests and laymen, to probe losses suffered by the archdiocese in dubious land deals since April, 2015. Alencherry’s secretary and church spokesman Father Jimmy Poochakkattu said the Cardinal would not react now. “He will bring out a circular in which he is expected to explain everything. It will be read out in churches under the archdiocese,” he said.

KCRM DEMO IN FRONT OF Archbishops house in Kochi

The Church Report confirms financial scam[4]: The losses were incurred after the sale of five plots owned by the diocese in various parts of Ernakulam district. The diocese should have received at least Rs 27 crore from the sales, which they needed to repay bank loans, but received only Rs 9 crore after the dubious real estate deals. The report stated, “There is grave violation of the Church laws, which amounted to naked act of breach of trust and criminal misappropriation of properties.’’ The probe committee also found unaccounted money, which it termed a “grave issue”. “Total amount receivable according to 36 deeds is Rs 13.52 crore. But, there is a difference of Rs 13.62 crore between the documented amount and the amount in the curia (a diocese body) resolution. Receiving unaccounted money is a serious offence as per the Income Tax Act.’’ The church panel report stated: “The Major Archbishop (Alencherry) was directly involved in alienating all the five plots, which were sold after being divided into 36 pieces. The first deed was registered even before it was discussed in the Consulters’ Forum. Decision of the finance council quoted in all the 36 sale deeds is incorrect. The receivable value set by the diocese was Rs 27.15 crore, whereas the value according to the registered deeds was only Rs 13,51,44,260.” The report also noted that the diocese only received Rs 9.13 crore from the “agent”. “It is painful to note that at the time of execution of the sale deeds, Alencherry has not assured the receipt of money to the archdiocese.’’

Mar Alencherry - land scam

Violation of Church law and civil laws along with the lack of transparency and collegiality: According to the report there were “numerous instances” of violation of Church law and civil laws along with the lack of transparency and collegiality. “As the head of the Syro-Malabar Church, Alencherry should have taken utmost care in respecting the provisions of Church laws,” the report said. Two others from the Church – priest Sebastian Vadakumpadan and the finance officer Joshy Puthuva – were also blamed for the dubious land deal. The report also named Saju Varghese Kunnel as the kingpin in the deal and alleged that he enjoyed the confidence of the Cardinal and father Puthuva. Without naming the Cardinal, the committee recommended, “People who are responsible for the crisis should be tried according the law of the Church and necessary action should be taken for the violation of the civil law.’’

Cardinal George Alencherry - Ernakulam-Angamaly Archdiocese-4

Where the money has gone?: The report stated that the registration of land deeds took place in violation of all norms even without receiving the entire amount from the sale. The committee found that the value of the land was Rs 4.47 lakh per cent but the archdiocese fixed this at Rs 9.5 lakh per cent. One cent is equal to 435.5 square feet. The report has blamed Alencherry for involving Kunnel in the transaction, but the former claimed he who introduced Kunnel to the finance officer Puthuva, who in turn said he acted under Alencherry’s instructions. The committee also evaluated that the diocese has lost Rs 46 crore in various land purchase and sale deals since April, 2015. Though the price fixed for five plots was Rs 9.5 lakh per cent, the then prevailing market rate was Rs 15 lakh per cent. Secretary of priests’ council Father Kuriakose Mundadan said the council had discussed the committee report on land dealings. “Alencherry informed the priests that the council would have an elaborative debate on the report later. The meeting of the pastoral council, a body of priests and laymen, would be held after the detailed discussion on the report in the priests’ council,’’ he said. Karedan ruled out chances of Alencherry’s resignation. “He has told the priests that he would give explanation for all the allegations after studying the report. He has reservations about some of the findings in the report. He has sought some more time to explain his stand,” he said.

Cardinal George Alencherry - Ernakulam-Angamaly Archdiocese-5

All Indians, who violate the Acts and Rules should be brought to book and get punished: Indians can be kept quite as this is related to Church and so on, but, the violation of law of this land is different from their internal hushing and covering ups. Just like “Katta-panchayat”, they have been concealing many crimes. Abhaya murder case is almost forgotten. Therefore, these violations cannot be simply treated as were “numerous instances” of violation of Church law and civil laws along with the lack of transparency and collegiality. Just because, they have power, money and above all, all suppressing and oppressive capabilities, even God may not forgive their sins. Even in this case, as they have crossed all the limits, their own believers have taken action to punish the guilty and bring under the law of this land.

© Vedaprakash

02-02-2018

Cardinal George Alencherry - Ernakulam-Angamaly Archdiocese-6

[1] DECCAN CHRONICLE. Magazine forced to withdraw story on Church land scam, | CYNTHIA CHANDRAN, PublishedJan 7, 2018, 6:35 am IST; UpdatedJan 7, 2018, 6:35 am IST

[2] https://www.deccanchronicle.com/nation/current-affairs/070118/magazine-forced-to-withdraw-story-on-church-land-scam.html

[3] Indian Express, Kerala: First black money case against Catholic church, Cardinal George Alencherry under cloud, Written by  Shaju Philip | Thiruvananthapuram | Updated: February 1, 2018 7:01 am

[4] http://indianexpress.com/article/india/kerala-first-black-money-case-against-catholic-church-cardinal-george-alencherry-under-cloud-5046960/

Thomas myth spread by Historians – Historian-liars on the increase in India!

October 17, 2015

Thomas myth spread by Historians – Historian-liars on the increase in India!

I was surprised to see an article / paper written by one Dr. K. Sadasivan, Professor & Head. Department of History, Manonmaniam Sundaranar University, Tirunelveli appearing in the “Journal of Indian History and Culture” (JIHC) March 2003, Tenth issue, published by C. P. Ramaswami Iyer Institute of Indological Research, The C. P. Ramaswami Aiyar Foundation, 1, Eldams Road, Chennai – 600 018. The journal is edited by Dr. G. J. Sudhakar and the editorial board consists of –

  Dr. K. V. Raman,

  Dr. R. Nagaswami,

  Dr, T. K. Venkatasubramanian and

  Dr. Nandita Krishna.

The editor in his note recorded –

“Dr. K. Sadasivan, of Manonmaniam Sundaranar University has added his scholarship to this issue through his paper “Early Tamil oral, Literary and Archaeological traditions and St. Thomas Christians

The learned editor’s complimented paper is appearing in the journal spreading to twenty pages (JIHC, pp.17-38). What and how the Professor has added his scholarship? Anything new? NO.

The learned Professor has just vomited what the propagandist missionaries and fraudulent group has already aided and abetted with the unscrupulous Archbishop & fundamentalist elements. Dr. Sadasivam has ironically not read what Dr. N. Nagaswamy has written about “the doubtful Thomas”. He has happily concluded as follows:

It can be understood from the foregoing study that even in the absence of any documented history, the universal and local Christian traditions are unanimous in their views that St. Thomas arrived in India in 52 A. D., reached Mylapore via the west-coast (Thirivithancode-Aralvaimozhi pass), performed there his apostolic service in converting the natives to his religious fold and suffered martyrdom there at the hands of a native in A. D. though there are differing versions are there about his killer(s) and the place of his martyrdom. Moreover, the presence of a strong St. Thomas community, the tomb, the Chapel and the Cross, and the architectural remains, makes us believe that St. Thomas was living among the Tamils of first century A. D. however, it is premature to postulate a theory of Christian influence in Tamil works, particularly, Tirukkural, though it seems to display the possibility of having been influenced by the Bible or Christ/s Sermon on the Mount. But, a spark of Christian influence on the Tirukkural is not impossible as this didactic work is believed to have been written in the second century A. D., when St. Thomas Christians in the West Coast were still entrenched and began spreading the Gospel of Christ” (pp.33-34).

   So the cat is out. Denying Christian influence on Tirukkural is to place it in 2nd century and accept it! This makes one to remember what M/s. Arulappa and Acharya Paul Company has done in early 1980s. Now who is doing that to make Sadasivam to come to the same conclusion?

   He asserts to conclude: “the universal and local Christian traditions are unanimous”. What is that universal tradition? Something alien or superman-type? Came from heavens or sent by Christ and revealed to Sadasivam? And that too the traditions are unanimous! It is unfortunate that as an historian should he lie like this.

   . Moreover, the presence of a strong St. Thomas community, the tomb, the Chapel and the Cross, and the architectural remains, makes us believe that St. Thomas was living among the Tamils of first century A. D. Are the historians so naïve and gullible to believe instead of asking for historical evidences? Definitely, something has happened to this gang of historians who decided to accommodate such false, that too, already well-known forgery and fraudulent act. Who gives such dating of first century A. D and all? Not only his dating is wrong but also the notation, as now only BCE and CE are used. The learned historian has been so “christianic” to follow Anno Domini! Any way to follow fraudulent and forge history such dubious dates have to be followed.

    “But, a spark of Christian influence on the Tirukkural is not impossible as this didactic work is believed to have been written in the second century A. D., when St. Thomas Christians in the West Coast were still entrenched and began spreading the Gospel of Christ”. Very well indeed. Had Arulappa been alive, he would have generously funded to Sadasivam of Tirunelveli,  as he did to Acharya Paul of Sri Rangam. How e gets the same “research methodology” of Arulappa and Co.?

   The acknowledgement of Dr. G. J. Sudhakar is unbelievable: “Dr. K. Sadasivan, of Manonmaniam Sundaranar University has added his scholarship to this issue through his paper “Early Tamil oral, Literary and Archaeological traditions andSt. Thomas Christians“. He has been a history Professor of Loyola College, editor of several history-journals, office-bearer of IHC, SIHC, TNHC etc. So his admission and appreciation of “scholarship” aiding and abetting false history, fraudulent history etc., is intriguing and appears to be heading for dangerous situation.

   Dr. Nandita Krishna has been of course not new for the spread of myth, as she has already contributed her mite in “The Hindu”. For details: See www.hamsa.org However, being a great-daughter of C. P. Ramaswami Iyer in his name the Foundation runs and publishes this journal, this is something unfortunate, as she could have avoided it. At least, she could have told Sudhakar not to publish it. But, what is done becomes history!

   Anyway, why Indian historians have been becoming liars? One has to study this aspect.