ED raids multiple states over GST fraud case.
Under PMLA, ED raided at least a dozen premises across three states in connection with a major GST fraud case.
GST Fraud Crackdown: ED Raids Multiple States in Rs 750 Crore Fake Invoice Case
New Delhi, August 7 — In a major operation against financial fraud, the Enforcement Directorate (ED) on Thursday carried out fresh raids across multiple locations in Jharkhand, West Bengal, and Maharashtra. The searches were linked to a suspected fake GST invoice scam worth an estimated ₹750 crore, involving fraudulent generation of Input Tax Credit (ITC) through shell companies and unauthorised financial networks.
According to official sources, the raids were conducted under the stringent provisions of the Prevention of Money Laundering Act (PMLA). At least a dozen premises across the three states were searched, targeting individuals and entities allegedly involved in the racket.
This case is not new for the ED. It marks the second wave of action in connection with the scam. The first round of searches was carried out in May this year, and the agency has since been tightening its net around the perpetrators.
The investigation reportedly focuses on a complex web of shell entities—companies created on paper but with no real business operations—used to generate fake invoices. These fake invoices are then used to claim illegal Input Tax Credit, a mechanism that allows businesses to reduce their tax liability on legitimate purchases. However, in this case, the ITC was claimed without any actual movement of goods or services, leading to a massive loss to the exchequer.
What adds a disturbing layer to the case is the alleged use of unauthorised financial channels to circulate and launder the ill-gotten money. The ED suspects that the fraudulent transactions may be just the tip of the iceberg, with possible links to larger economic crimes.
“Investigations are ongoing, and the extent of the fraud could be even higher,” a source close to the agency said. Officials are also examining potential collusion between the fraudsters and insiders in the financial system.
The raids have sent a clear signal that agencies are cracking down on GST-related malpractices with renewed urgency. With over ₹750 crore involved, this is one of the largest such cases in recent times.
More details are expected as the investigation progresses, and authorities continue to scrutinise the financial records and digital evidence seized during the raids.