Rourkela, Odisha | A fake GST Input Tax Credit (ITC) racket worth nearly ₹50 crore has been uncovered in the Rourkela region of Odisha. The investigation revealed that a network of bogus GST firms was allegedly created to generate fake tax invoices without any actual supply of goods or services. The alleged mastermind, Pinku Parida (26), has been arrested in connection with the case. He is accused of fraudulently generating, availing and passing on fake ITC through multiple fictitious entities.
Searches conducted during the investigation led to the seizure of electronic devices and crucial digital evidence, which helped investigators uncover the alleged ₹50 crore ITC fraud. Preliminary findings indicate that the operation was being run in an organised manner through several entities.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
According to investigators, the accused had been living in Raipur, Chhattisgarh, for nearly six months after leaving Odisha and remained under surveillance during that period. Acting on information that he had returned to his native village, the investigating team apprehended him on Thursday.
Following his arrest, Parida was brought to Rourkela and produced before a court, which remanded him to judicial custody. Investigators believe he played the central role in operating the fake ITC network.
The probe has further revealed that fake companies were allegedly used to issue tax invoices that had no underlying genuine business transactions. These invoices were reportedly used to fraudulently claim and pass on input tax credit, causing substantial losses to government revenue.
Investigators have now expanded the probe to identify other suspects, beneficiary firms and the complete financial trail linked to the syndicate. Digital records, banking transactions and business documents are being examined to determine who benefited from the fraudulent tax credit and how it was routed through the network.
Experts say organised fake GST billing and fraudulent input tax credit schemes pose a significant challenge to the country’s tax administration and public revenue. In recent years, enforcement agencies have intensified action against such frauds by relying on digital forensics, financial trail analysis and data-driven investigations to expose complex tax evasion networks.
The investigation is continuing, and officials expect that further inquiries may reveal additional accused persons, shell companies and financial links connected to the alleged racket. The questioning of the arrested accused is expected to provide further leads into the syndicate’s operations and the role of others involved.
