Jharkhand scrap dealer arrested in Rs 100 crore fake GST billing case

JAMSHEDPUR: The Directorate General of GST Intelligence (DGGI) has arrested a scrap trader, Ajay Sharma, based in Jamshedpur, in connection with an alleged GST fraud involving fake invoicing worth nearly Rs 100 crore, officials said on Thursday.

Investigators claim that the accused was linked to a large interstate network engaged in facilitating fraudulent Input Tax Credit (ITC) claims through shell companies.

The arrest followed raids conducted at the accused's premises in Baridih under the supervision of DGGI Joint Director Abhinav Kumar.

During the searches, officials seized mobile phones, laptops and several digital records believed to be relevant to the investigation. Following interrogation, Sharma was arrested on Wednesday evening and remanded to judicial custody.

According to the agency, Sharma allegedly availed and passed on fraudulent Input Tax Credit benefits by creating paper transactions in the names of several fictitious firms, including ‘Ganesh Trading’ and ‘Kanti Trading’.

Preliminary findings have uncovered a fake billing network involving transactions worth around Rs 100 crore, officials added.

Investigators are now examining the actual revenue loss caused to the government exchequer and identifying the businesses and individuals who may have benefited from the alleged scam.

The agency is also looking into possible links between Sharma and other businessmen who are already lodged in jail in connection with separate GST fraud cases.

However, officials have not yet shared detailed information regarding these suspected connections.

The DGGI has been investigating the alleged fake invoicing network spread across Jharkhand and several other states for the past several months. The digital data and financial documents seized during the raids are currently undergoing forensic examination.

Officials believe that further scrutiny could reveal the involvement of additional individuals and entities linked to the network.

According to the agency, the investigation is ongoing, with authorities continuing to trace financial transactions, shell companies and the alleged beneficiaries of the fraudulent ITC claims.