ED Conducts Raids Across Jharkhand, Bengal In ₹800 Crore GST Scam Linked To Fake Invoices & Shell Firms

Ranchi: The Enforcement Directorate (ED) on Thursday carried out a major crackdown on a massive Goods and Services Tax (GST) fraud, conducting raids at nine locations across Jharkhand and West Bengal.

The operation is part of the agency’s investigation into an alleged scam involving fraudulent input tax credit (ITC) claims worth over Rs 800 crore.

According to sources, ED teams launched simultaneous searches at four locations in Jharkhand -- including three in the capital, Ranchi, and one in the industrial hub of Jamshedpur.

Five other locations were raided in neighbouring West Bengal. To ensure the safety of officials conducting the searches, personnel from the Central Reserve Police Force (CRPF) were deployed at the sites.

The scam, as per preliminary findings, involves a network of businessmen who allegedly availed fake ITC by generating bogus GST invoices amounting to a staggering Rs 14,325 crore. The suspects reportedly used shell companies and forged documents to execute the fraud, claiming undue tax benefits before shutting down their fictitious firms.

Among those under the scanner are Shivkumar Deora, Sumit Gupta, Amit Gupta, and several others. ED officials are believed to have seized crucial documents during the searches, which are now being scrutinized for further evidence.

While the ED had conducted raids in Bengal last year in connection with this case, Thursday’s action marks the first significant operation in Jharkhand.

The scam has already drawn attention from tax authorities. Last year, the GST Directorate had unearthed separate fraudulent activities amounting to Rs 100 crore during raids in Sarubdera (Ramgarh) and Jharia (Dhanbad), and another Rs 150 crore scam in Jamshedpur and the Adityapur industrial belt.

As of now, the ED has not released an official statement on the latest round of raids, as investigations are still going on.

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