The Economic Offences Wing (EOW) of the Delhi Police has initiated a large-scale investigation into alleged fraudulent GST transactions amounting to nearly Rs 374 crore, officials said. Seven cases were registered across November and December after multiple victims reported misuse of their identity documents.
According to police, fraudsters allegedly obtained PAN, Aadhaar and other personal credentials of unsuspecting individuals to secure GST registrations and execute high-value transactions without the victims' knowledge. The transactions, though massive in value, are believed to be largely paper-based.
Businessman Discovers Rs 194 Crore Fraud During ITR Filing
One of the biggest cases surfaced on December 11, 2025, when a businessman from Inderpuri in West Delhi discovered that his PAN had been used to obtain a GST registration without consent. The fraudulent firm allegedly carried out transactions worth Rs 194.7 crore. The scam came to light after his chartered accountant noticed discrepancies during income tax return filing.
In another case registered in November, a Delhi-based couple alleged that a dummy company had been created in their names, showing transactions of Rs 69.9 crore despite them having no involvement in any such business activity.
Job Seekers and Low-Income Workers Targeted
A separate complaint filed on December 24 involved suspected GST fraud of nearly Rs 48 crore. The complainant, a former data-entry operator, told police that his PAN and Aadhaar details were collected on the pretext of opening a salary account. He later received notices from the income tax department in Karnataka and tax authorities in Gurgaon and Siwan regarding unexplained transactions conducted in his name.
Four additional cases under investigation involve alleged transactions worth Rs 9.4 crore, Rs 20 crore, Rs 26.9 crore and Rs 5.3 crore, police said.
Organised Gang Suspected
Investigators believe an organised network may be behind the frauds. Sources said scammers typically open bank accounts using manipulated credentials not linked to victims’ existing accounts, reducing detection risks. These accounts are then used by shell entities to show fake purchases and sales, inflating GST turnovers artificially.
Police said fraudsters often target employees, small business owners and job seekers by collecting personal documents under the guise of employment, financial help or GST compliance services.
Public Advisory Issued
Authorities have advised taxpayers to regularly verify PAN-GSTIN linkage on the GST portal and immediately flag unauthorised registrations. Citizens have also been urged to avoid sharing sensitive documents casually and to securely dispose of paperwork to prevent identity theft.
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