ED Cracks Down on Multi-Crore Fake GST ITC Fraud Across India
The Enforcement Directorate (ED) swung into action with raids on 10 locations spread across five states, including Delhi, as part of a massive probe into a fake Input Tax Credit (ITC) scam under the Prevention of Money Laundering Act (PMLA), 2002. This big bust, led by the ED’s Itanagar unit, happened on Thursday and has already uncovered shocking details of GST fraud through bogus invoices and shady money trails.
During the searches in Arunachal Pradesh, Delhi, Haryana, Tamil Nadu, and Telangana, ED teams froze bank accounts, seized property documents, and grabbed incriminating files. These revealed how fraudsters exploited the GST system with fake e-way bills and layered fund transfers to siphon off crores.
The whole mess started with a tip about Guwahati-based M/s Amit Traders, which turned out to be a ghost firm with no real address. Digging deeper, ED found it had faked purchases to pass on bogus ITC and was tied to M/s Shree Ram Enterprises. This company alone grabbed fake ITC worth Rs 116 crore using phony invoices totaling nearly Rs 700 crore.
In Arunachal Pradesh, owners of Rainbow Enterprises and A.K. Enterprises confessed to claiming over Rs 2 crore each in fake ITC without any actual goods or deliveries. Another player, Tanor Engineering, pocketed Rs 4 crore in bogus credits—ED froze properties worth Rs 3 crore and bank balances of Rs 36 lakh linked to them.
Over in Hyderabad, M/s Vinardh Automobiles Pvt. Ltd. owned up to inflating its turnover to Rs 110 crore in 2022-23 and 2023-24 through fake vehicle sales records. They claimed bogus GST refunds, shared the loot with insiders, and even used fake e-way bills while paying kickbacks to officials.
Haryana wasn’t spared either. M/s Jai Shree Balaji Traders and M/s Jai Shree Balaji Trading Co. reported fake turnovers of Rs 87 crore and Rs 62 crore, respectively, and passed on fraudulent ITC to major multinational companies, showing just how deep this GST fraud network runs.
In Delhi, M/s Prisha Exim boasted a turnover of Rs 200 crore in recent years, but its partners claimed they knew nothing about the deals—classic signs of dummy companies at play. ED’s ongoing investigation points to fake ITC flowing to big legitimate MNCs, and they’re digging even deeper to unravel the full scam.
This ED raid highlights the growing menace of fake ITC scams in India’s GST framework, and authorities are determined to clamp down on such money laundering tactics. Stay tuned for more updates on this multi-state fraud bust.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
