The Crime Branch of Nagpur unearthed a massive Rs 156 crore GST fraud involving a network of businessmen who operated over 60-70 fake companies to conduct illegal hawala transactions, online gaming activities and claim fraudulent GST refunds.
Following an overnight operation that began late Saturday and continued till early Sunday, the police arrested five accused: Bunty Shahu, Jayesh Shahu, Anand Harde, Rushi Lakhani, and Brijkishor Maniyar. They were produced before a magistrate on Sunday and remanded to police custody till May 22.
An FIR has been registered at Lakadganj Police Station based on a complaint filed by Biswajeet Roy, a Kolkata resident. The action was spearheaded by Senior Inspector Kamlakar Gaddime under the supervision of DCP Crime Rahul Maknikar and Commissioner of Police Ravinder Singal.
Victim Duped Using PAN and Aadhaar
Roy alleged that his PAN card, Aadhaar card, and other identity documents were misused by the accused to open a fake private firm in his name. This entity was then used to conduct fraudulent transactions amounting to Rs 96.39 crore between September and December 2024, using fake invoices to claim false GST refunds.
"I am a school dropout and was looking for some work after my father passed away in 2023," Roy said. "They promised me a monthly income and initially gave me Rs 25,000, even arranging accommodation at a godown. But I had no idea they were using my identity to carry out financial crimes."
Roy said he was introduced to the group by an acquaintance named Suraj Kedia in June 2024.
Second Victim Also Named
The complaint also reveals that another individual, Mithun Rajpande, was similarly exploited. Using the firm opened in Rajpande's name, the accused allegedly generated fake invoices worth Rs 59.51 crore between September and November 2024 and siphoned off the amount through fraudulent GST claims.
Modus Operandi: Fake Firms, False Invoices, Cash Withdrawals
The gang allegedly set up numerous fake entities with forged documents and bank accounts in the names of unsuspecting individuals. They created bogus purchase and sale invoices, routed payments through these accounts and withdrew the amounts in cash to avoid detection. The entire operation was designed to deceive the GST department and launder large sums of money.
Authorities believe the fraud could run even deeper, with links to illegal hawala networks and online gambling activities.
Ongoing Investigation
The crime branch has launched a wider probe to identify all accomplices and trace the flow of money. More arrests are expected as the investigation progresses.
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