New Delhi, May 16 (IANS) The Economic Offences Wing (EOW) of Delhi Police on Saturday busted a major GST fraud syndicate allegedly involved in generating fake invoices and fraudulent Input Tax Credit (ITC) claims worth nearly Rs 128 crore. Six accused persons have been arrested in connection with the case, officials said on Saturday.
According to the EOW, the racket involved the creation and operation of shell companies and fake business entities to generate bogus GST invoices without any actual supply of goods or services. The investigation has so far identified around 50 shell companies allegedly used for routing money through fake transactions and cash dealings.
Police said cash amounting to Rs 51.12 lakh, 15 mobile phones, two laptops, fake stamps, forged documents, multiple SIM cards, fake invoices, and two cars were recovered during the operation.
A case was registered on March 24 under Sections 316(2), 318(4), 336(3), 340(2), and 61(2) of the Bharatiya Nyaya Sanhita (BNS) at Police Station EOW.
The case pertains to the fraudulent creation and operation of a fake proprietorship firm, M/s R.K. Enterprises, using the identity and financial documents of an unsuspecting person on the false pretext of providing employment in the GST Department.
During the investigation, police found that the victim’s Aadhaar card, PAN card, electricity bill, and biometric details were misused in September 2025 to create the fake firm without his knowledge or consent.
Officials said transactions exceeding Rs 128 crore were carried out through the entity, and wrongful Input Tax Credit amounting to nearly Rs 10 crore was fraudulently claimed.
Technical surveillance and analysis of GST records, banking transactions, email IDs, and digital evidence revealed that accused Dilip Kumar and Raj Kumar Dixit were the main conspirators behind the creation of fake firms, bogus GST invoicing, and fraudulent GST returns.
Further investigation revealed that the accused Amar Kumar and Vibhash Kumar Mitra allegedly facilitated the operation of fake entities, while Nitin Verma, Mohd. Waseem and Abid were also involved in routing fake transactions and handling proceeds generated through bogus GST activities by providing bank accounts and internet banking credentials.
Multiple teams comprising Inspector Ramkesh, Inspector Kishanveer, SI Naveen, SI Dipesh, and SI Rahul, under the leadership of ACP Virender Kadyan and senior EOW officers, conducted coordinated raids across Delhi-NCR.
Following sustained efforts, the accused Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohd. Waseem and Abid were apprehended from different locations in Delhi-NCR on May 15. They were interrogated and later formally arrested.
According to investigators, the syndicate allegedly created fake firms and shell entities using forged credentials, fabricated financial documents, and fraudulent GST registrations to project them as genuine business establishments.
These fake firms were then used to generate bogus GST invoices without any real business activity, provide accommodation entries through banking channels, route funds in exchange for cash transactions, file fake GST returns, and fraudulently avail and transfer Input Tax Credit benefits.
Police said the racket caused a huge loss to the government exchequer through fictitious billing and fraudulent financial transactions.
Investigators identified Raj Kumar Dixit, a 43-year-old resident of Daryaganj, Delhi, as the alleged mastermind of the syndicate. Despite studying only up to Class 9, he allegedly operated a large fake invoicing racket from his office in Daryaganj along with his associates and brothers.
Police claimed he orchestrated nearly 250 shell companies using forged and fraudulently procured documents for bogus GST transactions and fake ITC claims. He allegedly used accountants, intermediaries, multiple bank accounts, and mobile numbers to conceal the money trail and evade detection.
Accused Vibhash Kumar Mitra, originally from Panna in Madhya Pradesh and residing in Vasundhara, Ghaziabad, allegedly assisted in creating shell firms and handling bogus GST registrations after failing to qualify as a Chartered Accountant.
Similarly, Amar Kumar, originally from Mathura in Uttar Pradesh, allegedly helped register nearly 200 shell firms using identity documents of unsuspecting individuals in exchange for money.
Nitin Verma of Shahdara was allegedly involved in operating fake firms and bogus billing networks, while Mohd. Waseem of the Jama Masjid area in Delhi allegedly handled bank accounts and shell entities used for routing fraudulent transactions.
Abid, a resident of the Uncha Challan area in Delhi and engaged in the meat supply business, allegedly provided four bank accounts that were used for routing funds through shell companies.
The EOW said further investigation is underway to identify additional beneficiaries, linked entities, and other members associated with the syndicate.
–IANS
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