Six held in ₹128 crore fake GST invoice racket in Delhi: Police

The case was registered by the EOW in March this year after the victim alleged misuse of his Aadhaar card, PAN card, electricity bill

Economic Offences Wing (EOW) of Delhi police busted a fake Goods and Services Tax (GST) invoicing racket involving transactions worth nearly ₹128 crore and arrested six people accused of creating shell companies, generating bogus invoices and fraudulently availing input tax credit (ITC), officers said on Saturday.

Police said the racket involved the fraudulent creation. (Representative Photo/iStock)

Police said the racket involved the fraudulent creation and operation of a proprietorship firm, allegedly using forged identity and financial documents of an unsuspecting man on the pretext of providing him employment in the GST department.

The case was registered by the EOW in March this year after the victim 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.

According to investigators, technical surveillance, scrutiny of GST records, banking transactions, email IDs and digital evidence pointed to two men, Dilip Kumar and Raj Kumar Dixit, as key conspirators behind the alleged operation.

Police said six accused, 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, has not been caught so far.

“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 allegedly used for routing money through bogus 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 a central Delhi office with the help of brothers and associates.

Despite studying only till Class 9, Dixit allegedly orchestrated nearly 250 shell firms using forged documents for fake billing and fraudulent GST transactions, 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.

Investigators alleged the duo helped register nearly 200 shell firms using documents of unsuspecting individuals.

Police said Verma (43), a Shahdara resident, allegedly created and operated fake firms for bogus billing, while Mohd. Waseem (30), of Jama Masjid, and Abid, a meat supplier from Delhi, 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.