Ranchi Traders Arrested in ₹11 Crore Fake GST Invoice Scam Busted by Jamshedpur DGGI

1. Location of Operation

The Directorate General of GST Intelligence (DGGI), Jamshedpur Zonal Unit, arrested two traders from Ranchi in connection with a ₹11 crore fake Input Tax Credit (ITC) fraud.

2.Identities of the Accused

The arrested individuals have been identified as:

Kumar Lav Agarwal – A battery dealer and authorized distributor.

Gulbahar Malik – A trader dealing in used batteries and alleged mastermind of the operation.

3.Nature of the Fraud

The traders allegedly created fake GST invoices without any actual supply of goods.

These invoices were used to fraudulently claim Input Tax Credit (ITC) from the government.

The fraud was executed through multiple shell firms with no real business activity.

4.Shell Companies Involved

More than a dozen bogus firms were floated to carry out the scam. Some of the names include:

New India Traders

Capital Enterprises

FM Trading

DD Enterprises

Zishan Trading

These firms were used to show fake purchases and generate fraudulent tax credit.

5. Financial Impact

The total value of fake invoices floated by the accused is estimated at ₹50 crore.

The wrongful ITC claimed amounts to over ₹11 crore, causing substantial loss to the exchequer.

6. Enforcement Action

After months of surveillance and investigation, the DGGI team conducted raids in Ranchi and arrested the accused.

Both were produced before a competent court in Jamshedpur and have been remanded to judicial custody.

The investigation is ongoing to identify further links and beneficiaries involved in the scam.