According to DGGI officials, Wadhwani was taken into custody from Raipur on the night of January 29 at around 9 pm following a detailed investigation. Preliminary findings indicate that the accused issued fake invoices without any actual supply of goods or services and availed ITC on their basis, in violation of GST laws.
The investigation revealed that Wadhwani was operating a firm registered in the name of his son, M/s Vijay Laxmi Trade Company. Authorities said the firm existed primarily on paper and was used as a conduit for generating fake invoices and routing bogus transactions. No genuine business activity corresponding to the invoiced amounts was found during scrutiny.
DGGI officials stated that the case was detected through a combination of specific intelligence inputs and advanced data analytics. During the probe, officials analysed bank statements, GST returns, e-way bill records and other financial transaction data. The analysis established a clear pattern of circular transactions and fraudulent ITC claims, pointing to an organised fake invoicing operation.
Following the findings, action was initiated under Section 69 of the Central GST Act, 2017, which empowers authorities to arrest individuals involved in serious tax offences. The offence is punishable under Section 132 of the Act, which provides for imprisonment and monetary penalties in cases of large-scale tax evasion.
After his arrest, Santosh Wadhwani was produced before the Raipur district court on Friday. The court remanded him to judicial custody, and he has been sent to Raipur Central Jail. Officials indicated that further investigation is ongoing to identify possible links with other firms or individuals who may have benefited from the fake invoices.
The DGGI Raipur Zonal Unit said it will continue its crackdown on GST evasion and illegal financial activities. The department has urged traders and businesses to strictly comply with GST regulations and maintain transparent records. It also warned that stringent action will be taken against those found indulging in fake billing and tax fraud.
Tax experts noted that under GST law, offences involving tax evasion exceeding ₹5 crore are considered serious and can attract imprisonment of up to five years, along with hefty fines. The present case is being viewed as one of the significant GST enforcement actions in Chhattisgarh, underscoring the government’s focus on curbing tax fraud and protecting revenue.
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