Massive GST Fraud Syndicate Busted in Delhi

GST officials have dismantled a Delhi-based syndicate orchestrating a fraudulent network involving 229 bogus firms, seizing Rs 645 crore of illegal input tax credits. The crackdown by the Directorate General of GST Intelligence uncovered extensive evidence, leading to the arrest of key conspirator Mukesh Sharma.

GST officers have busted a significant Delhi-based syndicate engaged in fraudulently obtaining input tax credit (ITC) worth Rs 645 crore through a network of 229 fake GST registered firms, as revealed by the finance ministry on Thursday.

The Directorate General of GST Intelligence, Delhi Zonal Unit, carried out coordinated raids at several locations city-wide, uncovering a vast trove of incriminating documents, digital devices, and ledgers. These findings confirmed the operation of shell companies issuing invoices without the actual supply of goods or services.

The operation involved 162 mobile phones, likely used for GST and banking OTPs, 44 digital signatures, and over 200 cheque books. Mukesh Sharma, identified as a key conspirator, was arrested, while the investigation continues to probe potential money-laundering through an NGO and a political entity.

(With inputs from agencies.)