Bengaluru: The Directorate General of GST Intelligence (DGGI), Bengaluru unit, has unearthed a massive Goods and Services Tax (GST) fraud involving ₹266 crore in fake billing and ₹48 crore in fraudulent Input Tax Credit (ITC) availed through bogus companies based in Delhi. The Finance Ministry revealed the details in an official release on Friday.
Acting on intelligence inputs, DGGI officials launched an extensive probe and conducted coordinated searches at multiple locations in Delhi. The investigation revealed that six shell companies, with no genuine business activity, had been generating fake invoices and engaging in circular transactions to fraudulently claim and pass on ITC.
A key accused in the case has been identified as a chartered accountant, who also served as a director in the bogus firms. Authorities seized fake invoices, forged documents, letterheads, and incriminating materials from his office. He has been taken into custody.
Officials said the scam involved layering transactions across entities to conceal the fraudulent ITC claims and avoid detection. Some of these shell companies were allegedly linked to listed firms, raising red flags about investor safety.
Based on the findings, the DGGI has forwarded relevant details to the Securities and Exchange Board of India (SEBI) and recommended parallel action under the Prevention of Money Laundering Act (PMLA). The matter may also trigger a Central Bureau of Investigation (CBI) probe.
The investigation is ongoing, with officials examining the role of other financial intermediaries and professionals suspected of facilitating the scam. Further action is likely as more connections to the fake ITC network come to light.
