New Delhi: Investigating agencies have uncovered a major alleged GST fraud network operating across Delhi and the National Capital Region, leading to the arrest of six accused involved in suspected fake billing and bogus input tax credit claims worth crores of rupees. Officials said the racket was allegedly being operated through forged documents, shell companies and layered financial transactions designed to evade detection.
Class 9 Dropout Accused of Running GST Fraud Network
According to investigators, the alleged mastermind of the syndicate is Dixit, a resident of Daryaganj, who studied only up to Class IX. Despite limited formal education, he allegedly operated a large-scale GST fraud network from an office in Daryaganj along with several associates and family members. Agencies believe the operation had evolved into a sophisticated financial network involving fake firms, manipulated documentation and coordinated banking activity.
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Officials claimed that the accused created and managed nearly 250 shell companies using forged and fabricated documents. These entities were allegedly used for bogus billing, fake invoices and fraudulent input tax credit claims under the GST regime. Investigators suspect the firms existed largely on paper and were used to create artificial business transactions aimed at facilitating tax evasion and financial manipulation.
Multiple Accounts and Mobile Numbers Used to Hide Money Trail
Preliminary findings further revealed that multiple bank accounts, mobile numbers and intermediaries were allegedly used to hide the financial trail. According to officials, accounts were opened in different names and funds were rapidly routed through them to conceal the identities of the actual beneficiaries. In several instances, the money was allegedly transferred immediately to other accounts or withdrawn in cash, making it difficult for investigators to trace the complete flow of funds.
Sources associated with the investigation said the accused allegedly relied on accountants and financial intermediaries for preparing documentation, registering companies and filing GST returns. Agencies are now examining whether additional professionals or business operators from other states were linked to the wider network. Investigators suspect the racket may have operated beyond Delhi-NCR and could involve beneficiaries spread across multiple regions.
Digital Evidence Seized
All six accused were arrested following coordinated raids conducted at different locations across Delhi and the NCR. Officials stated that the search operations led to the recovery of several digital devices, banking records, suspicious documents and electronic evidence connected to the alleged transactions. Forensic examination of seized mobile phones, laptops and financial data is currently underway to establish the scale and structure of the network.
Investigators are also scrutinising transaction histories, GST filings and communication records to identify additional shell entities and possible beneficiaries. Authorities believe the syndicate may have used layered banking channels and fake commercial activity to generate fraudulent tax credits and circulate funds without legitimate business operations backing the transactions.
Experts dealing with financial crimes say cases involving fake GST invoices and shell companies have risen sharply in recent years. Such networks typically create fictitious trade activity on paper to claim fraudulent input tax credits while simultaneously using multiple layers of transactions to obscure the source and destination of funds. Agencies across the country have increasingly intensified crackdowns on such organised financial fraud operations.
