The Directorate General of GST Intelligence (DGGI), Bhubaneswar Zone, has unearthed a massive GST fraud involving fraudulent input tax credit (ITC) claims worth over Rs 100 crore. A businesswoman from Rourkela has been arrested for allegedly operating 27 shell companies to generate fake invoices and e-way bills.
According to an official statement released by the DGGI on Thursday, the fraud came to light during an inspection of a Cuttack-based firm. Based on leads gathered during the inspection, GST officials conducted a search operation at the accused's residence in Rourkela, seizing incriminating evidence including fake seals of companies, mobile phones, and documents tied to benami entities.
Fake Firm in Lawyer's Name Triggers Probe
The investigation took a decisive turn when officers found that one of the shell firms had been registered in the name of a Cuttack-based lawyer, who denied any involvement or knowledge of the entity. This revelation led to a deeper probe that eventually exposed a web of 27 non-existent firms created using forged documents and dummy identities, spanning across Odisha and beyond.
Bogus Transactions Across States
The woman allegedly orchestrated a complex network of bogus firms, conducting no real business activity, but using them solely to generate fake GST invoices and claim ITC illegally. Initial investigations reveal that transactions amounting to Rs 85 crore were routed through these fake entities over the past few years.
"The accused was the mastermind behind a well-structured fake invoicing racket and has been arrested. The value of fraudulent transactions exceeds Rs 100 crore," said the DGGI statement.
Ongoing Investigation
Officials are currently tracking the extended network of these bogus entities to identify potential beneficiaries and co-conspirators. Further arrests and recoveries are expected as the investigation progresses.
The case adds to the growing list of GST frauds involving shell companies, highlighting the need for stricter compliance checks and real-time monitoring to prevent revenue leakage.
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