State GST department raids on Health Department contractor , GST evasion of Rs 1 crore revealed in supply of Rs 48 crore!

Representational Image -Source -Internet

Major action taken under Chief Minister’s zero tolerance policy: State GST department raids on Health Department supplier, GST evasion of Rs 1 crore revealed in supply of Rs 48 crore

Raipur: Under Chief Minister Vishnu Deo Sai’s zero tolerance policy against corruption and commitment to ensure transparency in government procurement, the State GST Department has taken action against M/s Shyam Surgical located in Raigarh. This firm also supplies surgical and medical equipment to government hospitals in Chhattisgarh as well as Jharkhand and Odisha.

Investigation by the State GST Department has revealed that the said businessman made supplies worth about Rs 48 crore to the Health Department in the last 4–5 years, while the actual purchase was only Rs 10 crore. It has also become clear in the preliminary investigation that the businessman made a profit of 400 to 500 percent by supplying material at rates 4–5 times higher than the purchase price.

To hide this profit and avoid GST liability, the businessman formed three other firms in the name of his family members – Rahul Enterprises, Narayani Healthcare, and P.R. Enterprises and evaded GST of about Rs 1 crore by showing purchase and sale among themselves.

In this case, as per the clear instructions of Chief Minister Vishnu Deo Sai, Finance Minister O.P. Chaudhary had directed the officials to keep a special watch on government supplies and immediately catch any kind of irregularity. Under this, the team of the State GST Department has taken this effective action.

Chief Minister Sai has said that the state government will not tolerate any kind of corruption in government funds and public health related services. This type of fraud is not only an economic crime but also a betrayal of public interest.

The state government has warned all such suppliers and contractors that if any person or institution tries to earn unfair benefits by misusing the government system, then strict action will be taken against him.

This action is an example of the honest, transparent and public welfare administrative approach of the state government, which makes it clear that the Chhattisgarh government under the leadership of Chief Minister Vishnu Deo Sai is working with full commitment and strictness against corruption.