Ranchi, July 7: The Enforcement Directorate (ED) has filed a prosecution complaint against four individuals for their alleged involvement in a massive ₹734 crore GST Input Tax Credit (ITC) fraud. The chargesheet was submitted before the Special Court under the Prevention of Money Laundering Act (PMLA), 2002, in Ranchi, Jharkhand.
The ED’s Ranchi Zonal Office named Shiva Kumar Deora, Mohit Deora, Amit Kumar Gupta, and Amit Agarwal, also known as Vicky Bhalotia, as the masterminds behind the elaborate fraud.
₹734 Crore ITC Scam Busted
The ED initiated its investigation based on several complaints filed by the Directorate General of GST Intelligence (DGGI), Jamshedpur. The DGGI had earlier uncovered a sophisticated tax fraud network involving the generation and circulation of fake GST invoices to claim fraudulent ITC.
According to the ED, the accused operated a complex web of 135 shell companies, which existed only on paper and had no actual business operations. These shell entities were used to issue bogus invoices amounting to over ₹5,000 crore, without any real supply of goods or services.
Fake ITC Passed to Beneficiary Firms
Through this elaborate setup, the syndicate fraudulently generated and passed on fake ITC worth ₹734 crore. The illicitly obtained tax credit was sold to various beneficiary firms for commissions, enabling them to unlawfully reduce their GST liabilities and evade taxes.
Proceeds of Crime Attached
The investigation has so far led to the identification and attachment of proceeds of crime, including:
- Immovable properties worth ₹5.29 crore
- Cash seizures amounting to ₹8.98 lakh
- Frozen bank balances of ₹62.90 lakh
Arrests and Raids
Earlier, the ED conducted extensive search operations across multiple locations in Jharkhand and West Bengal, leading to the arrest of all four accused on May 8, 2024, under the PMLA. The individuals are currently in judicial custody, as per the ED’s official statement.
Crackdown on GST Fraud Continues
The ED’s action is part of a broader crackdown on GST fraud and money laundering activities across India. Authorities have reiterated their commitment to dismantling such illegal networks that exploit the GST framework for personal gain.