The Directorate General of GST Intelligence (DGGI), Ludhiana, has uncovered a massive fake Input Tax Credit (ITC) racket involving Rs87.91 crore in fraudulent billing and Rs13.41 crore in tax evasion. Two individuals—Raman Kumar Chaurasia from Mandi Gobindgarh and Devinder Singh from Khanna—have been arrested.
The investigation exposed that three Punjab-based entities—M/s Aar Dee Enterprises, M/s Aashi Steel Industries, and M/s Abhi Alloys—engaged in bogus trading of iron and steel through fake invoices. These transactions were linked to a 37-shell company network operated from Lucknow by Deepanshu Srivastava and Mohit Kumar.
DGGI teams from Ludhiana and Lucknow collaborated in this cross-border investigation. Authorities found that the Punjab firms availed fake ITC from 78 fake entities. The operation not only retrieved key documents but was also supported by confessions from the accused. Raman Kumar and Devinder Singh were arrested on May 15 and sent to judicial custody.
Officials highlighted that the scam undermines government revenue, skews competition, and destabilizes market trust. DGGI reiterated its commitment to using intelligence and data analytics for early fraud detection and enforcement.
The DGGI, operating under India’s Ministry of Finance, remains a pivotal force in tracking down GST frauds and preserving the integrity of the taxation system.
