The Economic Offences Wing (EOW) of Delhi Police has uncovered an alleged large-scale Goods and Services Tax (GST) fraud network involving shell entities and bogus invoicing operations, leading to the arrest of six individuals accused of orchestrating fraudulent transactions worth more than ₹128 crore.

According to officials, the alleged racket was engaged in creating fictitious business entities and issuing fake GST invoices without any underlying supply of goods or services. The operation allegedly enabled wrongful claims of Input Tax Credit (ITC), causing substantial revenue loss to the exchequer.

The six accused arrested during coordinated raids conducted on May 15 at multiple locations across Delhi-NCR have been identified as Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohammad Waseem and Abid.

The investigation originated from a complaint concerning a firm identified as M/s RK Enterprises. A criminal case was registered at the EOW Police Station on March 24 under relevant provisions of the Bharatiya Nyaya Sanhita (BNS). The complainant alleged that his personal documents and identification credentials, including his Aadhaar card, PAN card, electricity bill and biometric details, had been misused after being collected under the pretext of securing him employment in the GST Department.

Investigators later discovered that the business entity had allegedly been incorporated in September 2025 without the complainant’s knowledge or consent. Authorities stated that the company was subsequently used to conduct transactions valued at more than ₹128 crore.

The investigation further revealed that fraudulent Input Tax Credit of nearly ₹10 crore had allegedly been availed through the fake entity.

Police officials stated that extensive analysis of GST records, bank transactions, digital communications, email accounts and technical surveillance data helped investigators trace the network. According to the probe, Raj Kumar Dixit and another accused, Dilip Kumar, who is currently absconding, were allegedly the principal architects of the operation.

Investigators alleged that Dixit managed a sophisticated fake invoicing syndicate from Delhi’s Daryaganj area with assistance from associates and family members. Authorities claim the network was involved in creating nearly 250 shell companies through forged documentation and fraudulently obtained credentials.

The alleged shell entities were then used to facilitate bogus transactions, issue fake invoices and generate fraudulent GST claims. Authorities believe the accused attempted to disguise financial trails by operating through multiple bank accounts, mobile numbers and intermediaries.

Police further alleged that Amar Kumar and Vibhash Kumar Mitra played roles in establishing shell entities and supporting fake GST operations. Nitin Verma is accused of creating and managing several fictitious firms with assistance from accountants.

Mohammad Waseem and Abid allegedly facilitated the movement of funds by providing bank accounts and internet banking access that were used to route transactions connected with the suspected fraud.

The investigation has so far led authorities to identify nearly 50 shell entities and related firms that were allegedly used to circulate funds and create fictitious GST transactions.

During searches conducted at multiple premises, officials recovered cash amounting to ₹51.12 lakh, 15 mobile phones, two laptops, multiple SIM cards, forged seals and fake stamps, along with large quantities of physical and digital invoices suspected to be fabricated. Two vehicles allegedly used in the operation were also seized.

According to investigators, these entities were allegedly used not only to generate fake GST invoices but also to provide accommodation entries through banking channels, route funds against cash transactions and file fabricated GST returns.

Authorities stated that the investigation remains ongoing and efforts are continuing to identify additional entities, beneficiaries and individuals that may have been connected with the alleged syndicate.

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