What was the scale of the GST scam uncovered by the Enforcement Directorate?

The Enforcement Directorate uncovered a ₹730 crore GST scam involving a syndicate that had created a network of 135 fake companies to issue fake invoices worth over ₹5,000 crore without any actual supply of goods or services.

Who were the key individuals arrested in the Enforcement Directorate's investigation?

The ED had earlier this year arrested Shiv Kumar Devda, the ringleader of the syndicate, along with his associates Mohit Devda, Amit Gupta, and Amit Agarwal.

Where did the Enforcement Directorate conduct its raids as part of the GST scam investigation?

The ED conducted search operations at eight locations across the states of Jharkhand, Kolkata, and Mumbai as part of its crackdown on the nationwide GST fraud scheme.

Home / Crime and Justice / Enforcement Directorate Busts ₹730 Crore GST Scam Involving 135 Fake Companies

Enforcement Directorate Busts ₹730 Crore GST Scam Involving 135 Fake Companies

7 Aug

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Summary

ED conducted raids across 3 states in ₹730 crore GST scam
Syndicate created 135 fake companies to issue ₹5,000 crore in fake invoices
Scam mastermind Shiv Kumar Devda and associates arrested earlier this year

Enforcement Directorate Busts ₹730 Crore GST Scam Involving 135 Fake Companies

In a major crackdown on financial fraud, the Enforcement Directorate (ED) has exposed a ₹730 crore GST scam orchestrated by a nationwide syndicate. According to the ED's investigation, the syndicate had set up a complex network of 135 fake companies that existed only on paper, but were used to issue fraudulent invoices worth over ₹5,000 crore without any actual supply of goods or services.

The ED conducted search operations at eight locations across Jharkhand, Kolkata, and Mumbai last week as part of its ongoing probe into the scam. This comes just months after the agency had arrested the syndicate's ringleader, Shiv Kumar Devda, along with his associates Mohit Devda, Amit Gupta, and Amit Agarwal earlier this year.

The investigation has revealed the sophisticated nature of the fraud, with the syndicate leveraging its network of phantom firms to generate fake invoices on a massive scale, depriving the government of legitimate GST revenue. The ED's crackdown on this elaborate scheme underscores its commitment to rooting out financial crimes and safeguarding the integrity of India's tax system.

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