ED Launches Multi-State Crackdown in Rs 658 Crore Fake GST Case

The Enforcement Directorate conducted searches across multiple states, including Jharkhand, West Bengal, and Manipur, to investigate a fake GST input tax credit case originating in Arunachal Pradesh. The case involves Rs 658 crore worth of fraudulent ITC claims and shell companies, with Rakesh Sharma and Ashutosh Kumar Jha as key suspects.

The Enforcement Directorate (ED) has initiated a widespread operation across multiple Indian states as part of a probe into a significant fake GST input tax credit case valued at Rs 658 crore. The case, originating in Arunachal Pradesh, has led to multi-state searches involving premises linked to various individuals and companies.

Investigations are currently being carried out under the stringent provisions of the Prevention of Money Laundering Act (PMLA). The ED's Itanagar office, in close coordination with various state police departments, has targeted regions including Jharkhand, West Bengal, and Manipur.

The investigation stems from an FIR lodged by the Itanagar Police, accusing Rakesh Sharma and Ashutosh Kumar Jha of fraudulently obtaining Input Tax Credit (ITC) through fake invoices. A non-existent firm and 58 shell entities are also under scrutiny by enforcement officers.

(With inputs from agencies.)