Maharashtra Tax Department Arrests Man in Rs 10 Crore ITC Scam

Strategic Insights -

The Maharashtra State Tax Department has arrested a 44-year-old man, Santosh Vitthal Londhe, in connection with a fraudulent Input Tax Credit (ITC) scam amounting to Rs 10 crore. Londhe, the authorized signatory of M/s Santosh Enterprises, is accused of availing and passing on fake ITC without any actual supply of goods or services. The scam involved false claims of trading in cement, steel angles, and iron and non-alloy steel products. However, officials found that the business did not exist at the registered address and no commercial activity was observed. This is not an isolated case, as a separate news story reported a similar scam involving Rs 18.66 crore input tax credit.

Key Takeaways:

  • The Maharashtra State Tax Department arrested Santosh Vitthal Londhe, a 44-year-old resident of Vikhroli, in connection with a Rs 10 crore ITC scam.
  • Londhe is the authorized signatory of M/s Santosh Enterprises, which claimed to trade in cement, steel angles, and iron and non-alloy steel products.
  • Officials found that the business did not exist at the registered address and no commercial activity was observed.
  • The scam involved false claims of trading in goods and services, and no E-way bills were generated during the financial year 2024-25.
  • Londhe's firm, M/s Santosh Enterprises, declared an outward tax liability of Rs 10.03 crore between December 2024 and May 2025.
  • This is not an isolated case, as a separate news story reported a Rs 18.66 crore input tax credit scam.
  • The accused proprietor of the firm in the separate case admitted to having started the company on someone else's instructions.
  • The accused was arrested under the provisions of the CGST Act, 2017, after substantial evidence was collected.

Statistics:

  • Rs 10 crore: Amount of the ITC scam involving Santosh Vitthal Londhe.
  • Rs 10.03 crore: Outward tax liability declared by M/s Santosh Enterprises between December 2024 and May 2025.
  • Rs 18.66 crore: Amount of the input tax credit scam reported in a separate news story.
  • Rs 8.80 crore: Value of ineligible ITC passed on by the accused proprietor in the separate case.
  • Rs 9.86 crore: Value of ineligible ITC availed by the accused proprietor in the separate case.

Sources:

  • Times Of India
  • CGST Investigation Wing
  • Indian National Press (Bombay) Pvt. Ltd., distributed by Contify.com