Bail was granted to different people in the past few weeks.Some industry observers suspect that circular trading may be used to inflate turnover or for bringing in black money to system. The said company sold goods to a company based in Pune, which sold the same goods to another company based in Bengaluru. Now, the third company sold the goods to the first, the Mumbai-based firm. All this while, the goods were kept safe at a godown in Mumbai and GST credits were paid on every lap of transaction. Industry trackers said that in many cases the promoters of such companies had landed in jail.

Source: Economic Times April 20, 2019 01:15 UTC