In a major crackdown on tax fraud, the Directorate General of GST Intelligence (DGGI), Jamshedpur unit, has arrested two individuals—Kumar Lav Agarwal and Gulbahar Malik—for their alleged role in a massive Rs50 crore GST scam. The duo was taken into custody from Ranchi on Tuesday for fraudulently claiming Input Tax Credit (ITC) worth over Rs11 crore using fake invoices and shell companies.
Joint Director Sarthak Saxena led the months-long investigation that exposed a fraudulent network involving nearly a dozen bogus firms including DD Enterprises, FM Traders, Verma Enterprises, New India Trading, Capital Enterprises, and Zishan Trading.
Agarwal, a battery dealer and distributor, and Malik, a trader in used batteries, are accused of fabricating transactions and creating GST bills without any actual movement of goods. Authorities estimate they manipulated fake invoices amounting to Rs250 crore to wrongfully claim ITC.
Malik alone is accused of evading Rs10 crore in GST, while Agarwal, in collaboration with others, is linked to fraud exceeding Rs40 crore.
Despite a raid in April 2025, the suspects had initially evaded capture. However, they were lured to the DGGI office in Jamshedpur under the pretense of providing statements. Agarwal entered the office, while Malik waited outside in a vehicle. During questioning, Agarwal denied possession of a mobile phone, but officials discovered that his driver managed multiple devices on his behalf—all of which were seized.
Authorities confirmed that both men are now in custody, and further investigations are underway to identify additional accomplices and trace the full extent of the scam.
