Iron Trader Arrested for Rs 26 Crore GST Fraud Involving 10 Fake Firms

Last updated: 14 June 2025

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Authorities in Raipur have arrested a 32-year-old iron trader, Aman Agarwal, for allegedly masterminding a £26 crore Goods and Services Tax (GST) fraud. He is accused of setting up 10 fake companies between 2023 and 2025 to generate fraudulent input tax credits through fictitious transactions. The investigation uncovered that some of these bogus firms were even registered in the names of deceased individuals, highlighting potential flaws in the GST registration process.

The State Goods and Services Tax (SGST) department has arrested a 32-year-old iron trader from Raipur for orchestrating a massive fake input tax credit (ITC) scam, leading to a loss of Rs 26 crore to the exchequer. Aman Agarwal, the accused, allegedly floated 10 bogus firms between 2023 and 2025 to claim fraudulent GST credits. According to Joint Commissioner Narendra Verma, Agarwal executed fictitious purchases and sales transactions worth Rs 262 crore using ghost companies, availing illegitim

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FAQ :

A 32-year-old iron trader from Raipur, Aman Agarwal, has been arrested for orchestrating a £26 crore GST fraud by creating 10 fake firms to claim fraudulent input tax credits.

The fraudulent activities resulted in a loss of approximately £26 crore to the exchequer.

Aman Agarwal allegedly executed fictitious purchases and sales transactions worth £262 crore using 10 ghost companies to avail illegitimate input tax credits.

Yes, authorities discovered that some of the fake firms were registered in the names of individuals who had passed away years prior to the alleged transactions.

Aman Agarwal has been booked under Sections 69 and 132B of the CGST Act, which relate to arrest and punishment for tax evasion, and has been taken into judicial custody.

The Chhattisgarh GST department plans to intensify surveillance and audits, particularly in sectors like metals and scrap trading, which are prone to such manipulations.

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CCI News Desk

Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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