The Economic Offences Wing (EOW) has uncovered a massive GST input tax credit (ITC) scam worth Rs 130 crore, expanding beyond Madhya Pradesh into Chhattisgarh and Maharashtra, officials confirmed on Monday.
Initially, the case involved Rs 34 crore in fraudulent ITC claims linked to nine active firms and four fake companies. As investigations progressed, the scale of the scam widened significantly.
EOW Director General Upendra Jain described the operation as an “organised GST scam syndicate” operating through fully digital channels, including bank accounts, email IDs, mobile numbers, and ITC claims.
The key accused, NK Khare (also known as Vinod Kumar), has been arrested as the mastermind behind the racket. Khare allegedly created 23 fake companies, using names of unsuspecting villagers to set up shell firms and defraud the government.
The fake business network has reportedly been running since 2009, using false identities and fake invoices. Authorities have traced fake invoices worth Rs 512 crore, with no actual goods traded—the entire operation existed only on paper.
