Delhi Police bust ₹128-cr fake GST invoice racket, six arrested

Delhi Police's EOW has arrested six for a ₹128 crore GST fraud involving fake invoices and shell companies, with one suspect still at large.

The economic offences wing (EOW) of Delhi Police has busted a nexus making forged GST invoices involving transactions worth around ₹128 crore, officers said on Saturday, adding that six people have been arrested for creating shell companies, generating fake invoices, and fraudulently availing input tax credit (ITC).

Police said the racket involved the fraudulent creation of a proprietorship firm, using identity and financial documents of people by luring them on the pretext of providing employment in the company. (Representative photo)

Police said the racket involved the fraudulent creation of a proprietorship firm, using identity and financial documents of people by luring them on the pretext of providing employment in the company.

The case was registered by the EOW in March this year after a man alleged misuse of his Aadhaar card, PAN card, electricity bill and biometric verification for creating the firm in September 2025 without his knowledge or consent.

“Investigation revealed that transactions exceeding ₹128 crore were carried out through the entity and wrongful Input Tax Credit amounting to nearly ₹10 crore was fraudulently availed,” said Ravi Kumar Singh, additional commissioner of police, EOW.

Police said Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohd Waseem and Abid were apprehended from different parts of Delhi-NCR on Friday following coordinated raids by multiple teams. One accused, Dilip Kumar, is currently on the run.

“The syndicate allegedly created fake firms and entities using forged credentials and fabricated financial documents to portray them as genuine business establishments. These entities were then used to generate bogus GST invoices without actual supply of goods or services, route funds, file fake GST returns and fraudulently avail ITC,” Singh said.

Investigators have so far identified nearly 50 shell companies been created by the nexus and used for routing money through fake GST entries and cash transactions, police said.

Among those arrested, police said Dixit, 43, a resident of Daryaganj, is the alleged mastermind who operated the racket from an office in central Delhi. Dixit allegedly orchestrated nearly 250 shell firms, police said.

Mitra, 34, originally from Panna in Madhya Pradesh and residing in Ghaziabad, and Amar Kumar, 35, from Mathura, allegedly facilitated GST registrations and operations of shell entities after working in accounting and GST-related activities in Delhi-NCR, police said.

Police said Verma, 43, a Shahdara resident, allegedly created and operated fake firms for forged billing, while Mohd Waseem, 30, of Jama Masjid, and Abid allegedly helped route money through bank accounts and shell firms.

During searches, police recovered ₹51.12 lakh in cash, 15 mobile phones, two laptops, fake stamps and forged documents linked to the fake firm along with multiple SIM cards, vehicles and digital records of fake invoices.

“Further investigation is underway to identify other beneficiaries and entities linked to the syndicate,” Singh said.