New Delhi. Delhi Police’s Economic Offences Wing has uncovered a major GST fraud network involving alleged identity theft, fake business entities and fraudulent tax transactions estimated at around ₹141 crore. Investigators said the racket misused PAN details, dormant company records and closed business entities to obtain GST registrations and generate fake input tax credit claims.
PAN Details and Dormant Firms Misused
Officials said three separate cases have been registered based on complaints from individuals whose identities were allegedly used without consent. The accused are suspected of creating shell companies and routing transactions through them to claim input tax credit illegally.
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In one case, a 63-year-old woman from New Delhi alleged that her PAN details and records of a former partnership firm were fraudulently used to obtain GST registration. The firm had ceased operations in 2013, but later appeared active in official records linked to suspicious transactions worth nearly ₹99.8 crore in ITC claims.
Fake Firms Linked to Crores in Transactions
In another case, a businessman from North Delhi reported that unknown persons used his PAN credentials to create a fictitious business entity. The fake firm allegedly carried out transactions exceeding ₹32 crore and was registered with a Pune-based address that had no connection to him.
A third case involved partners of a defunct Karol Bagh-based firm, who alleged that their closed business identity was misused to generate fake purchase and sale entries worth about ₹9.8 crore. The fabricated records were reflected in tax filings, creating legal and reputational problems for the original owners.
Probe Expands Into Wider GST Fraud Network
EOW officials said cases have been registered under provisions related to cheating, criminal conspiracy and forgery. Preliminary findings suggest that the incidents may be part of a larger interstate network engaged in systematic financial fraud through fake GST registrations.
Investigators believe outdated business data, weak KYC checks and lack of real-time validation helped fraudsters exploit the tax system. The misuse of dormant firms and stolen PAN credentials is emerging as a method for creating fake invoices and illegitimate tax credits.
The EOW is now examining banking transactions, digital footprints and associated entities linked to the suspected network. Officials indicated that more arrests and further revelations may follow as the investigation progresses.
