Delhi police busted a Rs 128 crore GST fraud
New Delhi: In a shocking revelation, Delhi’s Economic Offences Wing (EOW) has uncovered a massive GST fraud involving fake companies, leaving authorities astonished at the level of sophistication despite the mastermind’s limited formal education.
Six individuals, including the alleged ringleader, have been arrested in connection with the Rs 128 crore scam, which exploited loopholes in the government’s tax system.
Fake Company Network Unveiled
Investigations have revealed a web of approximately 50 shell companies, through which the accused conducted fraudulent transactions worth thousands of crores. The EOW is now meticulously examining bank accounts and financial records linked to these entities.
During the operation, authorities seized Rs 51.12 lakh in cash, 15 mobile phones, several laptops, counterfeit GST invoices, forged stamps, and two luxury vehicles, all of which could yield further evidence.
Modus Operandi of the Scam
According to the police, the syndicate first registered fake companies and generated fictitious invoices without any actual sale or purchase of goods. These transactions were then funneled through banking channels to simulate legitimate business activity.
Based on these fraudulent invoices, GST returns were filed, falsely declaring a massive turnover and illegally claiming Input Tax Credit (ITC) from the government. Investigators say this systematic fraud had been ongoing for a long period, demonstrating meticulous planning.
Recruitment Through Deception
The investigation also revealed that the accused lured unemployed individuals with fake job offers to obtain personal documents, which were later used to create shell companies. Rajkumar Dixit, the alleged mastermind who has studied only up to the ninth grade, is reported to have registered over 250 shell companies to date. Fraudulent transactions amounting to Rs rore have already been identified from just one of these entities.
Arrests and Ongoing Hunt
The six arrested include Delhi resident Rajkumar Dixit, Ghaziabad resident Vibhash Mitra, Mathura resident Amar, and Delhi residents Nitin Verma, Mohammad Wasim, and Abid. Another key accused, Dilip Kumar, remains at large, with police conducting continuous raids to apprehend him.
Investigation Likely to Expand
Authorities caution that the scope of the case may extend beyond Delhi, as the network operates across multiple states. Officials indicate that further prominent names connected to this massive scam could emerge as the probe continues.
