New Delhi: The Central Bureau of Investigation (CBI) has uncovered a ₹100 crore fake GST refund racket involving senior customs officials and private traders. The central agency conducted raids at seven locations across Bihar and Jharkhand, including Patna, Purnia, Nalanda, Munger, and Jamshedpur, targeting a serving IRS officer of the Customs cadre and 29 other individuals.
The operation led to the seizure of seven 100-gram gold bricks, incriminating documents, mobile phones, and digital evidence from the residences of the accused. According to sources, this is one of the biggest GST-related frauds involving a government official to come to light in recent months.
Fake Exports, Real Refunds: The Modus Operandi
The scam revolved around fraudulent GST refunds based on non-existent exports. As per the CBI’s FIR, senior customs officers—including the then Additional Commissioner (Customs), Patna, and two superintendents formerly posted at Bhimnagar and Jayanagar Land Customs Stations—colluded with private individuals, exporters, and importer companies to fabricate export transactions of tiles and automobile parts.
These bogus exports were falsely recorded to claim GST refunds and tax exemptions, thereby siphoning off government revenue. A total of 23 importer companies and several G-Card holders are named in the conspiracy, pointing to a widespread network of collusion.
FCRF x CERT-In Roll Out National Cyber Crisis Management Course to Prepare India’s Digital Defenders
The officers are alleged to have misused their official positions, deliberately approving fake shipping bills and export documents in return for bribes and personal benefits, enabling the clearance of refunds on goods that were never actually exported.
Trail of Evidence: Gold, Phones, and Forged Records Seized
The CBI’s multi-location search resulted in the seizure of significant evidence, including:
- 7 gold bricks, each weighing 100 grams
- Forged export-related documents
- Mobile phones and digital storage devices
- Financial records linking officials to exporters
The raids targeted properties linked to the accused officials and companies suspected of participating in the racket. Although no arrests have been officially confirmed yet, officials indicate that the evidence gathered is substantial enough to warrant further action, including custodial interrogation.
A senior CBI officer stated, “This is not just a case of tax evasion but a deep-rooted criminal conspiracy within the system, where officials entrusted with safeguarding public revenue were aiding its plunder.”
Algoritha: The Most Trusted Name in BFSI Investigations and DFIR Services
A Deepening Crisis in GST Enforcement?
The ₹100 crore scam raises fresh concerns about the growing sophistication of financial frauds linked to India’s GST framework. The case also reflects the vulnerability of refund mechanisms and the lack of stringent checks in cross-border trade certifications.
The involvement of an IRS officer and multiple customs staff in such a fraud undermines public trust in revenue enforcement agencies. Analysts warn that unless structural safeguards and digital audit trails are strengthened, similar scams could continue to bleed the exchequer.
This high-profile case adds to a growing list of corruption probes where white-collar crime is disguised behind layers of compliance and official paperwork. The CBI has assured that the probe is ongoing and that more names and arrests are likely as the investigation progresses.