Mumbai, India – Authorities have arrested a Chartered Accountant (CA) for his alleged involvement in a massive fake Input Tax Credit (ITC) scheme. Ritesh Padamchand Burad, a 51-year-old CA from Bhayandar, was apprehended by the CGST Palghar Commissionerate.
According to officials, Burad is accused of orchestrating a racket that generated fake ITC worth nearly Rs 12 crores (specifically Rs 11.72 crores) through a company named M/s Flutron Build & Infra Pvt. Ltd. and a network of other linked entities. The investigation revealed that the ITC was claimed using fake invoices, with no actual goods or services being supplied.
Investigators believe Burad, who has been a practicing CA since 2004, was the mastermind behind the scheme. He allegedly managed the fake invoicing, controlled bank transfers, and coordinated with company directors. For his services, he reportedly charged a 0.25% commission on each transaction. Burad is also linked to numerous “paper companies” that existed primarily to inflate turnover and enhance net worth to secure bank financing.
After being produced in a local court, Burad was remanded to judicial custody. The department’s focus now is on tracing the money trail and identifying other individuals involved in the fraudulent network.