The Economic Offences Wing has arrested two individuals, including a chartered accountant, in a multi-crore GST and VAT fraud case involving alleged misuse of business credentials, dummy firms and layered fund routing.
Complaint Leads to FIR
The arrests followed a complaint filed by Yashashwee Sharma, who alleged that his firm’s credentials were misused for unauthorised transactions amounting to Rs 28.4 crore. An FIR was registered after the complaint, leading investigators to examine the financial trail linked to the suspected transactions.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
The arrested suspects have been identified as Rajeev Kumar Parasar and Atul Gupta. According to the report, they were operating from a Chandni Chowk-based accountancy firm.
Dummy Firms and Layered Funds Under Probe
Authorities said the accused allegedly manipulated accounts and routed money through multiple channels to obscure the financial trail. The transactions were allegedly carried out through dummy firms and layered funds, pointing to wider financial manipulation.
Among those arrested is chartered accountant Atul Gupta, who has been linked to the alleged fraudulent use of GST and VAT credentials. The report also stated that Gupta, along with the late Prakash Gupta, allegedly facilitated fraudulent GST returns and compliance filings.
Police Remand as Investigation Continues
Both suspects were produced before a court and are currently on police remand. Investigators are now gathering additional evidence and working to identify possible co-conspirators connected to the alleged fraud.
The case has brought renewed attention to the misuse of tax credentials and dummy firms in financial offences, with investigators examining how the alleged transactions were executed and routed through multiple accounts.
