Hiren Gada, the CEO of Shemaroo Entertainment Ltd., was detained by the Central Goods and Service Tax (CGST) Department on Wednesday for allegedly committing tax fraud totaling Rs. 70.25 crore. Bollywood film production company Shemaroo Entertainment Ltd. also has a video-on-demand service.
The government exchequer suffered significant losses as a result of Hiren Gada and his associates’ creation of numerous shell companies to claim Input Tax Credit (ITC) totaling crores of rupees. Gada acknowledged establishing the aforementioned businesses to receive tax credits of Rs. 70.25 crore without providing any goods or services.
Hiren Gada was arrested for violating the CGST Act’s pertinent provisions.
He was presented to a Mumbai court on Thursday, where his attorneys claimed that the GST employees had ‘illegally’ held him for more than 24 hours. However, according to GST officials, Gada was questioned on Wednesday, arrested that day, and brought to court the following day. The Shemaroo CEO was not placed in judicial prison after the court heard the arguments on both sides and granted his release.
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