Punjab’s steel hub, Mandi Gobindgarh, has come under renewed scrutiny after the Enforcement Directorate (ED) uncovered an alleged network involving fake GST invoicing, cash withdrawals and suspected money laundering linked to Agriculture Produce Market Committee (APMC) bank accounts. An FIR has been registered at Jamalpur police station in Ludhiana against five businessmen from Mandi Gobindgarh and Fatehgarh Sahib districts.
The case was registered on the complaint of Suraj Kumar Yadav, Assistant Director, Enforcement Directorate, New Delhi. The accused have been identified as Amit Kumar Goyal, Manish Kumar, Gaurav Aggarwal, Balwant Singh and Gurdeep Singh of Amloh.
ED Probe Tracks Movement of Funds
According to the complaint, the ED was investigating suspicious transactions and suspected money laundering involving multiple entities allegedly controlled by the same group of individuals who shared common addresses, phone numbers and email IDs.
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Investigators alleged that these entities were created to layer high-value funds through fake GST invoicing and cash withdrawals amounting to ₹3,089.57 crore from APMC bank accounts maintained at various branches of IDFC First Bank. Additional transactions were also routed through accounts held with other banks.
The ED stated that during its investigation under the Foreign Exchange Management Act (FEMA), 1999, it obtained and analysed bank account statements of various linked entities to trace the movement of funds.
Alleged Network of Shell Firms and Fraudulent ITC
According to investigators, payments received through RTGS transfers were routed into accounts of alleged fake firms and then transferred to APMC bank accounts operated by proprietorship concerns. The arrangement allegedly facilitated large-scale cash withdrawals while avoiding tax deduction at source obligations under Section 194N of the Income Tax Act, 1961.
The FIR states that cash was withdrawn through 25 bank accounts maintained with various branches of IDFC First Bank.
The Directorate General of Goods and Services Tax Intelligence (DGGI), Ludhiana Zonal Unit, had earlier investigated transactions allegedly involving Amit Kumar Goyal, his brother and associate Manish Kumar. Investigators alleged that Amit Kumar Goyal, Manish Kumar and Gaurav Aggarwal created 27 fake or bogus firms that were used to siphon funds and generate fraudulent Input Tax Credit (ITC).
Authorities alleged that the network generated and passed on fraudulent ITC worth approximately ₹108.49 crore against total billing of ₹720.97 crore, causing losses to the government exchequer.
Digital Evidence and Earlier Arrests
Search operations conducted by the DGGI in Ludhiana resulted in the seizure of 54 cheque books, 46 ATM cards, five voter identity cards, 11 PAN cards, seven stamps, multiple mobile phones, hard disks, laptops and loose documents linked to various firms and individuals.
According to investigators, the seized material indicated that dummy firms were being operated in the names of other individuals through the alleged misuse of their identity documents. The investigation also found that two firms, N.R. Steels and Goyal Steel Industries, were registered using Amit Kumar Goyal’s own PAN number, while the remaining firms were allegedly created using KYC documents belonging to other individuals.
Officials further alleged that several entities shared the same registered email address and mobile number. Analysis of digital devices reportedly revealed KYC documents and invoices connected to multiple firms.
Investigators said the racket operated through 27 alleged bogus firms that issued fake invoices to generate fraudulent ITC. Funds received through RTGS transfers were routed through these firms to APMC bank accounts, from where cash withdrawals were made. The withdrawn cash was allegedly returned to beneficiary firms after deduction of a commission.
Both brothers were arrested by the DGGI on October 9, 2024, and were later granted regular bail on July 28, 2025. The FIR states that data extracted from mobile phones and digital devices, along with KYC records obtained from various banks, formed part of the evidence examined during the investigation.
