₹266 Crore GST Invoice Fraud Uncovered, Key Accused Arrested
Bengaluru:
In a significant crackdown on tax evasion, the Directorate General of GST Intelligence (DGGI), Bengaluru Zonal Unit, has exposed a massive fake invoicing scam involving six shell companies. The operation, conducted across several locations in Delhi, uncovered fraudulent invoices worth ₹266 crore and wrongful claims of input tax credit amounting to ₹48 crore. Authorities have arrested a key mastermind behind the scheme.
The investigation began in Bengaluru and revealed that the companies had no genuine business activities. Instead, they were set up solely to issue fake invoices and conduct circular trading to artificially inflate turnover. Notably, one of the companies involved was listed on the stock exchange.
Officials reported that four of the companies had claimed receipt of goods and services worth hundreds of crores without any actual operations. Investigators traced the fraud to a chartered accountant who had served as director and statutory auditor in several of the implicated firms. He allegedly managed shareholding structures and oversaw the fraudulent activities from behind the scenes.
Raids at various premises led to the seizure of critical evidence, including original invoices, company seals, and other documents, many found directly in the possession of the arrested individual. A DGGI official noted that beyond tax evasion, the scam also poses a serious risk to investors—particularly in the publicly listed firm tied to the fraud.
The DGGI has now launched a broader investigation to trace additional links and accomplices. Given the growing trend of shell firms and listed entities using fake input tax credit claims, the agency has also passed on specific intelligence to SEBI for further regulatory action.
News Source : Information for this article was gathered from a variety of reliable news outlets.
