Ludhiana, Jan. 30 -- The local unit of directorate general of GST intelligence (DGGI) bused a fake billing scam worth Rs.79.4 crore in the insurance sector, officials said, adding that three individuals were arrested.

They said the scam caused revenue loss of Rs.12.1 crore to the government.

The accused, identified as Rajinder Singh, Manmohan Singh and Rajinder Pal Singh, were arrested on January 28 and have been sent to judicial custody. Officials said the arrested accused were the masterminds behind the racket.

A 30-member team from Ludhiana and Amritsar conducted raids on 12 business and residential premises on January 9. Officials recovered incriminating documents proving that multiple firms were registered under 'dummy' individual...