In one of central India’s largest GST frauds to date, the Economic Offences Wing (EOW) has uncovered a massive fake invoicing scheme valued at Rs512 crore, with fraudulent Input Tax Credit (ITC) claims totaling Rs130 crore. The alleged ringleader, Vinod Sahay—who also operated under aliases NK Khare and Neelu Sonkar—was arrested in Ranchi and transported to Jabalpur on a transit remand.
Hailing from Tibri village in Jabalpur, Sahay is believed to have orchestrated the scam since 2009. He allegedly created over 23 shell companies that existed only on paper, showing fake business activities to generate GST invoices and fraudulently claim ITC. None of the companies had actual goods, services, or operational infrastructure.
According to investigators, these fictitious firms conducted massive trade on record, yet had no physical inventory, warehousing, or logistics—a classic hallmark of invoice fraud.
The EOW’s investigation revealed over 150 bank accounts tied to Sahay’s web of companies. Raids on his property uncovered a trove of fabricated documents including GST bill books, forged Aadhaar and PAN cards, counterfeit transport receipts, and digital identity credentials.
The operation spanned across Jabalpur, Nagpur, Bilaspur, Korba, and Ranchi, exploiting digital loopholes and identity obfuscation tactics to remain under the radar for more than a decade.
Authorities have remanded Sahay to custody until July 2, and early indications suggest the scam may be far larger than initially estimated. “This may be the region’s biggest GST scam,” an officer told NDTV. “We are now investigating deeper layers of financial operatives possibly tied to interstate networks.”
As the probe continues, enforcement agencies are also examining the role of digital identity manipulation and interstate fraud rings, suggesting the case could have wider national implications.
