The Enforcement Directorate (ED) on September 11, launched search operations at multiple locations in Arunachal Pradesh, Haryana, Delhi, Tamil Nadu and Telangana in connection with a massive fake Input Tax Credit (ITC) case of around Rs 650 crore, officials said.
The searches have been underway based on some specific inputs. The agency sleuths carried out the raids at the premises of some suspects linked to the case. ED’s Guwahati unit is conducting the operation in close coordination with state police forces.
The case pertains to firms allegedly engaged in generating and availing fraudulent ITC through fake invoices without the actual supply of goods or services. Such fraudulent claims not only cause losses to the exchequer but are often linked to money laundering and shell company operations.
The ED’s searches were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), following information shared by the Goods and Services Tax (GST) authorities.
Fake ITC scams have been a major concern for tax enforcement agencies in recent years. In several past cases, fraudsters floated multiple shell companies to pass on tax credits illegally, creating a parallel chain of bogus transactions.
Officials said the ongoing action is aimed at unearthing the entire network behind the scam and identifying the end beneficiaries.
Last month, the federal agency had also carried out search operations at 12 locations spread across Jharkhand, West Bengal, and Maharashtra as part of its ongoing probe into a similar massive fake ITC scam involving Rs 750 crore. The case was linked to a fraudulent network involving shell companies and unauthorised financial channels used to claim and launder fake ITC.
The investigation, then launched, originated from the arrest of Shiva Kumar Deora, alleged to be the mastermind of the syndicate. Deora was taken into custody in May 2025 and was chargesheeted last month.
Officials say his interrogation and seized evidence revealed the involvement of several other individuals and firms in laundering the proceeds of crime.
(with inputs from ANI)
