New Delhi [India], November 13 (ANI): The Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit, has uncovered a massive case of fraudulent availment and passing of Input Tax Credit (ITC) through a web of 229 dummy GST-registered firms, controlled and operated by a Delhi-based syndicate, according to a statement from Ministry of Finance on Thursday.
Acting on credible intelligence, DGGI officers conducted coordinated search operations at multiple premises across Delhi, unearthing a huge cache of incriminating documents, digital devices, and ledgers that established the operation of non-existent firms engaged in issuing invoices without actual supply of goods or services, the finance ministry said.
"This included 162 mobile phones, probably used to get OTPs for GST/banking purposes, 44 Digital signatures and over 200 cheque books of various firms. The preliminary findings indicate that these bogusentities were engaged in issuance of invoices without any actual supply of goods or services, resulting in the fraudulent passing of ineligible ITC amounting to Rs. 645 crore approx, causing substantial loss to the exchequer," the finance ministry statement read.
Investigations have revealed that Mukesh Sharma, a key conspirator, allegedly orchestrated the operations of this network of fake entities.
Evidence points to his active role in managing GST registrations and returns and records of dummy firms, managing banking transactions, and facilitating the circulation of illicit funds through multiple layers, the finance ministry has asserted.
As the alleged offences of Mukesh Sharma are cognizable and non-bailable, he has been arrested on 11.11.25 under relevant section(s) of CGST Act, 2017 and has been sent to judicial custody, the statement noted.
"The investigation has also brought to light a possible money-laundering component, wherein proceeds of the fraud were allegedly rotated through an NGO and a political outfit. Further investigation is underway," the finance ministry statement concluded. (ANI)
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