The Meerut Zonal Unit of Directorate General of GST Intelligence (DGGI) unearthed two major fake billing rackets involving 246 shell/fake entities, which have passed on fraudulent ITC of Rs. 557 crore. In this matter till date, three key operatives have been arrested. One of this racket had close nexus with fake firms unearthed by Noida Police in June, 2023.

Taking clue from the Noida Police case and based on extensive data mining coupled with human intelligence, 2 major syndicates, being operated by masterminds Mr. Anand Kumar & Mr. Ajay Kumar, involved in creating and operating fake shell entities have been busted. Several documents related to fake firms like forged stamps, debit/credit cards, cheque books, Aadhaar card, PAN card, etc. were resumed from the secret offices of Mr. Anand Kumar & Mr. Ajay Kumar at Adhyapak Nagar and Paschimpuri, Delhi respectively. This indicates close nexus of these masterminds with brokers/agents which specialise in procuring IDs of poor, needy and susceptible people in lieu of petty monetary benefits. Both the masterminds have been arrested.

Forensic examination of seized laptops & mobile phones led to retrieval of ledgers, invoices, e-way bills, bilties etc. being maintained in Tally/BG systems software. Apart from this, bundles of WhatsApp chat/ voice massages evidencing the transactions of fake GST bills & illegal cash flow has also been retrieved. Initial probe has also indicated the involvement of bank officials in opening of the bank accounts in the name of fake firms.

These 2 syndicates have issued invoices having taxable turnover of Rs. 3,142 crore involving ITC of Rs. 557 crore through 246 fake firms to more than 1,500 beneficiary firms. Major beneficiary firms are located in Delhi and others are spread across 26 other states. Mr. Vikram Jain, Proprietor of one such beneficiary firm, has also been arrested during the investigation.

All the three accused were produced before Economic Offence Court, Meerut on 26.07.2023 and have been remanded for judicial custody till 08.08.2023.

Fake GST input tax credit fraud exposed through shell entities, forensic digital evidence, and arrests of alleged syndicate operatives. The Meerut Zonal Unit of the Directorate General of GST Intelligence uncovered two syndicates operating 246 shell entities that issued fraudulent invoices to pass Input Tax Credit to numerous beneficiary firms; forensic analysis of seized devices recovered accounting records, invoices, e-way bills and messaging evidence, and investigations indicate use of forged identity documents, brokered procurement of vulnerable persons' IDs, and possible bank account facilitation, leading to multiple arrests and remand to an Economic Offence Court.