Ludhiana, May 8: The State Intelligence and Preventive Unit has arrested the director of a Ludhiana-based firm for allegedly orchestrating a massive fake billing racket involving transactions worth Rs 85.4 crore. Finance, Excise, and Taxation Minister Harpal Singh Cheema stated that Paramjit Singh, Director of M/s API Plastic Recyclers Private Limited, was taken into custody for wrongfully availing Rs 15.56 crore in input tax credit.
Investigation teams determined that the firm engaged in organized tax evasion by utilizing invoices from fraudulent and non-functional entities across several states. Cheema declared that the company claimed tax credits without ever receiving actual goods. The minister affirmed that the total amount of the fraud is expected to rise as the investigation into the network continues.
“The tax department has successfully busted a highly organised fake billing network,” Cheema asserted while disclosing the details of the operation. He noted that a detailed analysis of e-way bills and FASTag data proved that vehicles listed in transport documents were not at the locations required for the declared movement of goods.
The department’s probe identified 407 suspicious vehicle movements linked to over Rs 2.65 crore in fake credits. Investigators also discovered a new fraudulent method involving debit notes where the taxable value and tax amount were listed as equal, a configuration Cheema affirmed is impossible under GST law.
“In view of the substantial evidence collected during the investigation, the accused has been arrested today, May 8, 2026,” the minister stated. He maintained that the recovery of blank receipt books from various transporters at the firm’s premises suggested the forgery of transport records. Because the evasion exceeds Rs 5 crore, the offense is non-bailable and carries a potential five-year prison sentence.
