- Enforcement Directorate conducted searches at 12 locations in three states for GST fraud
- Case involves fake Input Tax Credit claims worth over Rs 730 crore using shell entities
- Shiv Kumar Deora, alleged mastermind, was arrested in May 2025 and chargesheeted recently
The Enforcement Directorate (ED) conducted extensive search operations on Thursday at 12 locations spread across Jharkhand, West Bengal, and Maharashtra in connection with a case linked to fraudulent GST invoices. The action is being carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
The case pertains to a large-scale financial fraud involving shell entities and unauthorised financial networks that were allegedly used to claim fake Input Tax Credit (ITC) and launder illicit proceeds. The accused, including mastermind Shiv Kumar Deora, allegedly generated fake invoices worth approximately Rs 5,000 crore, resulting in ineligible input tax credit claims of over Rs 730 crore.
Deora, who is believed to be the mastermind of the syndicate, was arrested in May 2025 and subsequently chargesheeted last month for his central role in orchestrating the racket.
According to the probe agency, new searches are based on fresh and credible evidence pointing to the involvement of several additional individuals and entities suspected of facilitating the movement and layering of the proceeds of crime. The objective of the operation was to unravel the broader money trail, identify key beneficiaries, and seize incriminating material.
Officials stated that the use of fake invoices and shell companies has emerged as a common modus operandi in tax fraud cases, and this particular case underscores the need for tighter financial surveillance mechanisms.
The agency has not disclosed details of seizures or arrests, if any, from today's action, but confirmed that further investigation is underway. More developments are expected as the search operations progress and financial linkages are established.
This is part of the probe agency ED's continued crackdown on economic offenders misusing financial systems to siphon off public revenue.
