DGGI Ahmedabad Busts ₹800-Crore Fake Billing Racket; Four Key Accused Arrested Across Three Linked Cases

In a major enforcement action against GST fraud, the Ahmedabad Zonal Unit of the Directorate General of GST Intelligence (DGGI) has unearthed a massive fake invoicing syndicate valued at nearly ₹800 crore.

The crackdown—one of the biggest this year—has resulted in the arrest of four masterminds involved in orchestrating large-scale bogus billing, creation of shell companies, and fraudulent availing of input tax credit (ITC) without any actual movement of goods.

Multi-City Investigation Exposes Fraud Network

The DGGI probe spanned Ahmedabad, Rajkot, Bhavnagar, Junagadh, Jamnagar, Mumbai, and Chandrapur, revealing an organised nexus that created shell firms using forged identities; installed dummy directors; purchased dormant companies with active GST registrations; pass-generated fake invoices through online infrastructure; routed cash reversals via hawala channels; and issued bogus invoices to evade taxes, primarily benefitting the iron and steel sector in Gujarat and Maharashtra

According to officials, the syndicate used sophisticated digital tools to mimic legitimate business activity while enabling massive GST fraud.

Case 1: ₹550-Crore Fake Invoice Network

The largest of the three cases involved bogus invoices worth ₹550 crore.

On November 27, DGGI arrested Badre Alam Pathan and Taufik Khan from Ahmedabad. The accused allegedly operated A H Engineering Works and issued fake invoices worth ₹45 crore, fraudulently passing on ₹8.86 crore in ITC.

Investigators stated that the duo, along with absconding accomplices, set up dozens of firms using forged documents and controlled them online to create a façade of genuine transactions.

Case 2: Junagadh-Based Network of 47 Dummy Firms

In a parallel development, Hardik Raval, partner of Bharat Sanitary & Fitting in Junagadh, was arrested on November 25. He is accused of masterminding a network of 47 dummy firms used exclusively to issue fake GST invoices and circulate fraudulent tax credits.

Case 3: ₹121-Crore Fake Billing Linked to Jamnagar Traders

In the third case, related to the brass and steel trade in Jamnagar, the DGGI arrested Jaydeep Virani on November 28. He allegedly availed inadmissible ITC of ₹22 crore on the basis of fake invoices valued at ₹121 crore.

DGGI Speaks

Rajesh Kumar, Additional Director, DGGI Ahmedabad Zonal Unit, stated that the accused collectively facilitated bogus billing operations that catered largely to manufacturers in Ahmedabad, Jamnagar, Rajkot, and Maharashtra.
He emphasised that the arrests mark an important step in dismantling organised GST fraud networks that exploit loopholes through shell corporations and digital manipulation.