The Delhi Police’s Economic Offences Wing (EOW) has dismantled an alleged Goods and Services Tax (GST) fraud syndicate, arresting six individuals for their involvement in generating fake invoices and swindling an estimated ₹128 crore. The racket operated through a network of shell companies, defrauding the government of input tax credit.
Information was available with The Chenab Times that the accused allegedly established fictitious firms and produced bogus GST invoices. Through these fraudulent transactions, they wrongfully claimed Input Tax Credit (ITC) without the actual movement of any goods or services. This illegal practice significantly undermined the GST regime.
The arrests followed a series of raids conducted by EOW teams across various locations in the Delhi-National Capital Region (NCR) on May 15. The individuals apprehended have been identified as Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohammad Waseem, and Abid. A case concerning GST fraud was initially registered against a fake firm, M/s RK Enterprises, at the EOW Police Station on March 24 under relevant sections of the Bharatiya Nyaya Sanhita (BNS).
The investigation was prompted by a complaint alleging the misuse of personal identification documents, including an Aadhaar card, PAN card, electricity bill, and biometric details. The complainant stated that these were used under the false pretence of providing employment within the GST Department. It was discovered during the police investigation that the firm was incorporated in September 2025 without the victim’s knowledge and subsequently used for financial transactions exceeding ₹128 crore.
The EOW stated that wrongful ITC amounting to approximately ₹10 crore was fraudulently obtained through this fabricated entity. The probe employed technical surveillance, meticulous analysis of GST records, banking transactions, email correspondences, and other digital evidence. This comprehensive investigation revealed that Raj Kumar Dixit and Dilip Kumar, who is currently at large, were the principal architects of this elaborate fraud.
According to police reports, Dixit managed a large-scale fake invoicing syndicate from Daryaganj, orchestrating the creation of nearly 250 shell companies. This was achieved using forged and fraudulently procured documents, allegedly with the assistance of his brothers and associates. These entities were systematically employed for fictitious billing, bogus GST transactions, and illegitimate ITC claims.
The financial trail of these illicit activities was deliberately obscured by the accused through the use of multiple bank accounts, an array of mobile numbers, and various intermediaries. Amar Kumar and Vibhash Kumar Mitra played key roles in facilitating the formation of these shell firms and were instrumental in carrying out the bogus GST activities.
Nitin Verma reportedly spearheaded the creation and operation of multiple fake firms, leveraging the services of accountants. Mohammad Waseem and Abid were allegedly involved in providing crucial banking infrastructure, including bank accounts and internet banking credentials. These were essential for routing the fraudulent transactions and channeling the proceeds generated from the bogus GST activities.
So far, approximately 50 shell companies and entities identified as being used for money laundering and fraudulent GST entries have been brought under scrutiny. During the searches conducted by the police, a significant amount of cash, amounting to ₹51.12 lakh, was recovered. Additionally, law enforcement seized 15 mobile phones, two laptops, multiple SIM cards, counterfeit stamps, forged documents, extensive collections of physical and digital fake invoices, and two vehicles believed to have been used by the accused in their operations.
The police statement further detailed that these firms were allegedly utilized to generate fictitious GST invoices, provide accommodation entries via banking channels, facilitate fund transfers in exchange for cash, and submit fraudulent GST returns. The investigation remains ongoing, with authorities seeking to identify other beneficiaries and entities connected to this extensive syndicate. The Economic Offences Wing is continuing its efforts to unravel the full scope of the fraud and bring all involved parties to justice.
The Chenab Times News Desk