Investigating agencies have uncovered a massive alleged GST fraud network operating across Delhi and the National Capital Region, leading to the arrest of 6 accused linked to suspected fake billing and fraudulent input tax credit claims worth crores of rupees.
According to officials, the racket allegedly functioned through forged documents, shell companies, and layered financial transactions designed to avoid detection by authorities.
Investigators identified Dixit, a resident of Daryaganj who reportedly studied only up to Class 9, as the alleged mastermind behind the operation. Officials claimed he operated the network from an office in Daryaganj along with associates and family members. Agencies believe the syndicate evolved into a highly organised financial network involving fake firms, manipulated records, and coordinated banking activity.
Authorities alleged that nearly 250 shell companies were created and managed using forged and fabricated documents. These entities were reportedly used for bogus billing, fake invoices, and fraudulent GST input tax credit claims. Investigators suspect many of the firms existed only on paper and were used to create artificial business transactions for tax evasion and financial manipulation.
Officials further stated that multiple bank accounts, mobile numbers, and intermediaries were allegedly used to conceal the financial trail. Funds were reportedly transferred rapidly between accounts or withdrawn in cash to make tracing difficult.
Sources connected to the investigation said accountants and financial intermediaries were allegedly involved in preparing documentation, registering firms, and filing GST returns. Agencies are now examining whether additional professionals or operators from other states were connected to the wider network.
All 6 accused were arrested after coordinated raids across Delhi and NCR. During the searches, officials recovered digital devices, banking records, suspicious documents, and electronic evidence linked to the alleged transactions.
Forensic examination of seized mobile phones, laptops, and financial data is currently underway. Investigators are also reviewing GST filings, transaction histories, and communication records to identify more shell entities and possible beneficiaries.
Financial crime experts noted that fake GST invoice and shell company fraud cases have increased significantly in recent years, prompting agencies across India to intensify crackdowns on organised financial fraud networks.
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