In a significant breakthrough in the ongoing investigation into a massive GST evasion and fake invoicing racket, the Madhya Pradesh State Economic Offences Wing (EOW) has arrested two more suspects — Sheikh Zafar of Anuppur and Raja Sheikh of Bhopal. These arrests raise the total accused in the case to three, including the alleged mastermind Vinod Sahay alias N K Khare, previously detained.
The case (EOW Case No 102/25) involves fraudulent invoicing amounting to Rs 512 crore and fake Input Tax Credit (ITC) claims totaling Rs 134 crore, executed through a web of shell companies and fabricated transactions. This sophisticated fraud has led to huge revenue losses for the government over recent years.
EOW officials revealed that Sheikh Zafar operated two fake firms — Amber Coal Depot and Anam Traders — on instructions from the primary accused, Vinod Sahay. These firms, while non-operational, generated bogus transactions with other shell companies such as Maa Reva Traders, Namami Traders, and Abhijeet Traders, all linked to Sahay.
These companies falsely claimed to supply coal to major thermal power plants like MSP Power, B S Sanjhe Power, and Prakash Industries, using fabricated documents including invoices, e-way bills, truck numbers, and weight slips without any actual coal delivery.
The second accused, Raja Sheikh, proprietor of Mehak Enterprises, was arrested in Bhopal on July 1, 2025, and sent to judicial custody the next day. Investigations found Raja involved in fake cement transactions worth Rs 6 crore with shell firms controlled by Sahay — Abhijeet Traders, Namami Traders, and Ankita Steel & Coals — falsely claiming Rs 1.20 crore in ITC.
During searches at Raja’s premises, officials seized seals of other suspicious firms and incriminating documents, further strengthening the case.
