Summary:
According to CGST officials, Sujana group of industries floated these shell companies for the sole purpose of generating fake invoices and real loans. Officials said that Sujana group used these firms for fictitious business transactions and raised challans of Rs 1,284 crores as CGST payment. Summons were issued on Feb 28 and later an authorisation was given to CGST officials to arrest the directors if they do not comply. These same fictitious CGST payments were then shown as collateral by the shell companies to raise more than Rs 2,000 crore bank loans, CGST sources said.Now, CGST officials have slapped notices on directors of these firms to pay up the CGST amount cited to avail loans. The bench, while asking the petitioner firms to cooperate with the investigators, told authorities not to arrest them till Mar 18 if they cooperate..