India, June 16 -- The department of trade and taxes of Delhi government said they have busted a case of Goods and Services Tax (GST) refund fraud amounting to approximately Rs.14 crore and have also arrested a proprietor.

The department said Rs.1.16 crore has been recovered so far and proceedings are underway to retrieve the remaining amount. As many as 45 bank accounts linked to 27 implicated entities have also been frozen. An FIR has been lodged with the Economic Offences Wing (EOW).

A senior department official said the investigation revealed a network of individuals who created and operated four fictitious firms to illegitimately claim GST refunds under the guise of genuine business activities.

Police said data analytics with scrut...