Coimbatore-based businesswoman held by Noida Police over ₹10,000 cr GST fraud
During probe, Prabhu’s name came to light nearly three months ago and recently a ₹25,000 reward was announced for information leading to her arrest
The Noida Police has arrested a 40-year-old businesswoman in Coimbatore, Tamil Nadu, for her alleged involvement in a ₹10,000-crore Goods and Services Tax (GST) fraud, officials said on Sunday.
Deputy commissioner of police (crime) Shakti Avasthy said that the arrested suspect was identified as Suganya Prabhu, a resident of Race Course Road in Coimbatore. She was arrested from her residence on Saturday by the Crime Response Team of Noida Police with the help of the local police in Tamil Nadu, Avasthy added.
Last year on June 1, the Noida Police claimed that it busted a gang that was allegedly orchestrating a ₹10,000-crore GST fraud by registering thousands of companies under stolen or fake identities and utilising these firms to generate e-way bills and obtain input tax credit (ITC) from the government. So far, 45 people have been arrested for their alleged involvement in the scam. The suspects belonged to Delhi, Noida, Ghaziabad, Sirsa in Haryana, Jaipur in Rajasthan and Chhindwara in Madhya Pradesh.
“During the investigation, Prabhu’s name came to light nearly three months ago, and she remained absconding since then. Earlier this month, the Noida Police commissionerate announced reward of ₹25,000 in exchange for information leading to her arrest. Police traced her to Tamil Nadu,” said Avasthy.
He added, “Prabhu is a multimillionaire who runs a metal manufacturing factory in Coimbatore. Her net worth is estimated to be at least ₹100 crore. Over the last one year, she has availed ITC from four fake shell companies, causing a loss of ₹14.2 crore to the government exchequer.”
The suspect has been booked under charges of cheating, forgery and criminal conspiracy under several sections of the Indian Penal Code.
“Prabhu was produced before the local court and sent to judicial custody on Saturday,” said the officer.
On June 3 this year, the Noida Police invoked charges under the Gangster Act against 33 of the 45 arrested accused in the GST fraud case.
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