Woman Arrested for Over ₹100 Crore GST Fraud Involving Fake Firms

1. Overview

A 45-year-old woman from Rourkela, Odisha, has been arrested by the Directorate General of GST Intelligence (DGGI), Bhubaneswar Zonal Unit for her alleged involvement in a massive ₹100+ crore GST fraud. This fraud primarily revolved around the creation and management of fake firms and fraudulent Input Tax Credit (ITC) claims.

2. The Accused: A Mastermind Behind 27 Fake Firms

According to GST officials, the woman acted as the kingpin of a large-scale racket. She was allegedly operating 27 fake/non-existent firms which had no real business activity. These shell companies were created using forged documents and the names of dummy individuals across Odisha and other regions.

3.How the Fraud Worked: Fake ITC Through Bogus Transactions

The primary objective of these fake firms was to generate fake invoices and e-way bills.

This allowed them to illegally claim GST input tax credits, causing huge losses to the government.

Through bogus supply chains and transactions, the accused managed to defraud the GST system over several years.

4. Investigation Timeline: From Cuttack Clue to Rourkela Arrest

The investigation began after DGGI officials conducted a routine inspection of a firm based in Cuttack.

This led to suspicions and ultimately to the identification of the woman in Rourkela as the central figure.

Officials then conducted a search at her residence where they found:

Fake seals of various firms

Multiple mobile phones

Key documents linked to bogus business entities

5.Past Offence: ₹11 Crore Fraud in 2022-23

This isn’t her first brush with the law. In 2022-23, the GST department had already served her notice for an alleged ₹11 crore fraud involving four fake firms. However, her operations had expanded much further by the time she was arrested this year.

6.Legal Action: Judicial Custody

After her arrest on Thursday evening, she was produced before a local court and was sent to judicial custody as the investigation continues.