The Enforcement Directorate (ED) launched a sweeping operation targeting a sprawling network of fake GST invoicing and money laundering, conducting searches at 12 premises across Jharkhand, West Bengal, and Maharashtra. The probe falls under the Prevention of Money Laundering Act (PMLA), 2002, and is part of an ongoing investigation into a financial scam involving over ₹730 crore in fraudulent Input Tax Credit (ITC) claims.
Officials stated that the action was triggered by new and credible evidence suggesting the involvement of additional individuals and entities beyond those previously identified. The fraudulent scheme allegedly revolved around the generation of fake invoices worth ₹5,000 crore, orchestrated by a network of shell companies and unauthorized financial channels.
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Syndicate Kingpin Already Behind Bars
The central figure in the scam, Shiv Kumar Deora, was arrested in May 2025 and formally charged in July. According to ED officials, Deora played a pivotal role in engineering the creation of multiple shell firms that were used to claim illegal tax credits and launder funds through complex layering methods.
The searches aimed to unearth the money trail, identify the ultimate beneficiaries, and seize incriminating digital and physical records. The ED has yet to disclose the outcome of the raids in terms of seizures or arrests, but confirmed that further revelations are likely as the investigation expands.
Rise in Fake Invoices Prompts Calls for Financial Surveillance
Authorities noted that the use of fake invoices and shell entities has become a widespread tactic among economic offenders to siphon public revenue. The case underscores the urgent need for enhanced monitoring of financial systems and inter-agency cooperation to detect and disrupt such frauds at early stages.
This operation is part of a broader crackdown on economic offences being carried out by the ED in recent months. The agency reaffirmed its commitment to dismantling illegal financial structures that exploit India’s tax and banking ecosystem.