The Enforcement Directorate (ED) pressed forward with its raids in Mumbai for the second consecutive day, targeting properties linked to a massive ₹750 crore Goods and Services Tax (GST) fraud. The operation, launched on August 7, spans multiple states and involves key individuals accused of orchestrating a network of fake transactions to illicitly claim Input Tax Credit (ITC).
According to ED officials, searches were conducted at 12 locations connected to six individuals. The raids began simultaneously in Ranchi, Jamshedpur, Saraikela, Dhanbad, and Mumbai. The individuals under investigation include Shyam Thakkar from Ranchi, Gyanchand Jaiswal from Jamshedpur, Panchanand Sardar from Saraikela, Chinu Agarwal alias Amit Agarwal from Dhanbad, and Ankesh Jain alias Malik Ji from Mumbai.
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Evidence of Fake ITC Claims Seized
During the August 7 operations, the ED reportedly uncovered critical evidence, including documents pointing to fraudulent ITC claims. Officials stated that the suspects had allegedly generated and utilised fake invoices without an actual supply of goods or services, resulting in wrongful GST refunds.
Digital devices, financial ledgers, and transaction records were seized from multiple sites. In the case of Ankesh Jain, investigators discovered additional Mumbai properties during the first day of raids, prompting an extension of searches into August 8.
The agency suspects that the fraudulent network spanned shell companies and intermediary firms used to layer transactions, making it difficult for tax authorities to trace the original source. The ED’s financial forensics teams are now analyzing the seized data to map the flow of illicit funds.
The ongoing investigation is part of a broader crackdown on GST evasion and misuse of ITC provisions under the GST regime, which has become a growing concern for revenue authorities. Officials have hinted at possible arrests once the collected evidence is verified.