The Navi Mumbai CGST Commissionerate said on Thursday it has busted a racket of 15 fake entities involved in claiming input tax credit fraudulently to the tune of Rs 10.28 crore. The Commissionerate has arrested a businessman, who is proprietor of M/s Maharashtra Enterprises, in this regard.

The fraudsters had generated the fake ITC by issuing bogus invoices of metal scrap without any receipt or supply of goods of more than Rs 57 crore. The network is spread in the cities of Mumbai, Aurangabad and Nashik, said Prabhat Kumar, Commissioner, CGST & C. Excise, Navi Mumbai Commissionerate, in a statement.