According to SGST officials, Shaikh took documents such as Aadhaar cards and PAN numbers of construction labourers in Bhavnagar, by falsely promising them loans. Similarly, he got documents of other persons from Surat, Gandhidham and Rajkot, and illegally obtained GST registrations in their name, to float bogus companies.
Fake bills of Rs 399 crore were generated through these shell companies, using which input tax credit worth Rs 60 crore was illegally claimed. Shaikh has been sent to judicial custody by a Bhavnagar court.
Using the same modus operandi, Vanzara started a bogus company by getting documents from other persons and getting GST registrations. Fake bills worth Rs 79.25 crore were generated, using which traders illegally got input tax credits of Rs 10.97 crore.