The Delhi Police Economic Offences Wing has busted an alleged GST fraud racket involving shell companies, fake invoices and wrongful Input Tax Credit claims, arresting six people linked to transactions exceeding Rs 128 crore, officials said.
Six Arrested After Raids in Delhi-NCR
The accused allegedly operated fake firms, generated bogus GST invoices and availed wrongful Input Tax Credit without any actual supply of goods or services, according to an EOW statement. The arrests were made after several raids were conducted at different locations in Delhi-NCR on May 15.
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Those arrested have been identified as Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohammad Waseem and Abid. A case of GST fraud was registered against a fake firm, M/s RK Enterprises, at the EOW Police Station on March 24 under various sections of the Bharatiya Nyaya Sanhita.
Fake Firm Created Using Victim’s Documents
The complainant alleged that his Aadhaar card, PAN card, electricity bill and biometric details were misused on the pretext of providing him employment in the GST Department. During the investigation, police found that the firm had been created in September 2025 without the victim’s knowledge and was later used for transactions exceeding Rs 128 crore.
The police statement said wrongful Input Tax Credit amounting to nearly Rs 10 crore was fraudulently availed through the fake entity. Investigators said the probe, involving technical surveillance and analysis of GST records, banking transactions, email IDs and other digital evidence, revealed that Dixit and Dilip Kumar, who is still at large, were the main conspirators behind the racket.
Shell Companies and Fake Invoices Under Probe
Police said Dixit allegedly operated a large-scale fake invoicing syndicate from Daryaganj with his brothers and associates, and orchestrated the creation of nearly 250 shell companies using forged and fraudulently obtained documents. Investigators said the firms were used for bogus billing, fake GST transactions and fraudulent ITC claims while the financial trail was concealed through multiple bank accounts, mobile numbers and intermediaries.
Amar Kumar and Vibhash Kumar Mitra allegedly facilitated the formation of shell firms and bogus GST activities. Nitin Verma allegedly created and operated multiple fake firms with the help of accountants, while Mohammad Waseem and Abid were allegedly involved in providing bank accounts and internet banking credentials for routing fake transactions and proceeds generated through bogus GST activities.
Police said around 50 shell companies and entities used for routing money and fake GST entries have so far been identified. During searches, officials recovered Rs 51.12 lakh in cash, 15 mobile phones, two laptops, multiple SIM cards, fake stamps, forged documents, large quantities of fake invoices in physical and digital form, and two cars allegedly used by the accused.
According to the police statement, the firms were allegedly used to generate bogus GST invoices, provide accommodation entries through banking channels, route funds in lieu of cash transactions and file fake GST returns. The investigation is continuing to identify other beneficiaries and entities linked to the syndicate.
