Bhopal (Madhya Pradesh): The Economic Offences Wing (EOW) has detected a massive GST input tax credit (ITC) scam worth Rs 130 crore during its ongoing investigation, officials said on Monday.
Initially, the EOW had registered a case involving Rs 34 crore in fraudulent ITC claims linked to nine operational firms and four fake companies. As the investigation progressed, the scam’s scope widened to Rs 130 crore and has spread beyond Madhya Pradesh to Chhattisgarh and Maharashtra.
EOW Director General Upendra Jain said that this is an "organised GST scam syndicate" with fully digitally coordinated transactions, bank accounts, email IDs, mobile numbers and ITC claims.
The key accused, NK Khare, also known as Vinod Kumar, has been arrested. He is identified as the mastermind behind the racket and is accused of setting up four companies under the names of unsuspecting villagers to defraud the government.
Khare had allegedly created 23 fake firms to carry out the scam and has been running this fake business network since 2009 using false identities.
So far, fake invoices worth Rs 512 crore have been traced. No goods were actually bought or sold—everything existed only on paper.
Scam in short
Rs 130cr GST ITC scam uncovered by EOW
23 fake firms, 4 shell companies involved
Rs 512cr fake invoices traced without real trade
Accused used villagers' names, ran fraud since 2009
