Ludhiana, March 7 -- The Directorate General of GST Intelligence (DGGI) arrested a man and his nephew for their alleged involvement in a Rs.282-crore fake billing scam, officials said on Thursday.

The officials identified the accused as Raj Kumar and his nephew Prince Kumar. They said the accused allegedly issued fake invoices worth Rs.282.96 crores to fraudulently pass ineligible input tax credit (ITC) worth Rs.42.98 crores through 26 firms operated by them.

According to the officials, the firms were engaged in trading iron and steel scrap, TMT bars and cardboard scrap, among other materials. During a search operation of the accused's premises, officials seized central processing units (CPU), mobile phones, invoices, cheque books, diar...