GST Scam: Prime Suspect in Rs 10,000 Crore GST Fraud is Arrested from Delhi

Authorities allege that this person has been orchestrating this GST scam for the past five years

In a significant development, a 29-year-old man was arrested from Delhi for his alleged role in a massive GST scam amounting to Rs 10,000 crore. The Noida police disclosed that the GST scam involved the creation of thousands of fictitious firms using stolen or fabricated identities to exploit e-way bills and claim input tax credit (ITC) from the government.

This GST scam came to light last June when the Noida police made eight initial arrests and seized a substantial list of over 3,000 fake companies, all registered using bogus PAN card details, officials revealed. These sham entities were then utilized to generate e-way bills, which are crucial GST-related documents for transporting goods.

With the recent arrest, the total number of individuals apprehended in connection with this GST scam has reached 30, according to officials.

The prime suspect, identified as Vikas Dabas, hails from Mubarikpur in Delhi, stated Shakti Avasthy, the deputy commissioner of police (crime) leading the investigation. Dabas had been on the radar since the initial arrests, being considered one of the key figures associated with the fraudulent scheme. Authorities allege that he has been orchestrating this GST scam for the past five years, obtaining GST rebates by using forged bills from fictitious firms operating under genuine GST numbers.

The DCP mentioned that Dabas, along with his associates, would fabricate documents like Aadhaar cards, PAN cards, rent agreements, and electricity bills to establish these dummy firms with valid GST numbers. Furthermore, Dabas reportedly sold these fraudulent entities to individuals seeking GST rebates, leading to substantial losses for the government amounting to thousands of crores.

Despite being on the run since the dismantling of the gang last October, with a reward of ₹25,000 on his capture, Dabas managed to evade authorities by frequently changing his location across the country. However, on Monday, law enforcement finally caught up with him when he returned to his residence in Delhi. He was subsequently remanded in judicial custody on Tuesday.

The suspect faces charges under various sections of the Indian Penal Code, including 420 (cheating), 467, 468, and 471 (all related to forgery), along with section 120 B (criminal conspiracy).

Additionally, the Noida Police recently took action by attaching properties worth ₹5 crore belonging to two other suspects of this GST scam who still remain absconding. This attachment was carried out under section 83 (Attachment of property of person absconding) of the Criminal Procedure Code (CrPC).

To Access the Recent Ruling of Madras HC “ITC Cannot be Denied Solely based on GSTR-3B” CLICK HERE

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