Mumbai: The Enforcement Directorate (ED) on Thursday conducted search operations at 12 locations across Mumbai, Jharkhand and West Bengal in connection with a Rs 750-crore fake Input Tax Credit (ITC) scam under the Prevention of Money Laundering Act (PMLA), 2002.
Kolkata Businessman Shiva Kumar Deora Allegedly Masterminded 135 Shell Firms
The case is linked to the arrest of Kolkata-based businessman Shiva Kumar Deora, alleged to be the mastermind behind a web of 135 shell companies accused of generating fake GST invoices. According to officials, these invoices were used to fraudulently claim and sell ineligible ITC to genuine companies, enabling large-scale tax evasion. ED investigations suggest that these firms issued bogus invoices worth Rs 14,325 crore without any actual supply of goods or services, leading to wrongful ITC claims of approximately Rs 734 crore.
Raids Mark First Major Extension of Probe Into Maharashtra
Thursday’s raids marked the first major extension of the probe into Maharashtra, with multiple locations in Mumbai and its suburbs coming under the scanner. Officials said the fake ITC was sold to genuine businesses for commissions, and the proceeds were allegedly laundered through layers of bank accounts and dummy companies. Investigators suspect that part of the illicit funds was routed through Mumbai-based firms and individuals, prompting the coordinated searches. The operation was based on what the agency described as “credible evidence” of further individuals and companies involved in laundering the proceeds of crime. However, no specific names have been made public yet.
This marks the first major extension of the investigation into Maharashtra, following earlier operations in Jharkhand and West Bengal.
The case began with the arrest of Shiva Kumar Deora in May 2025. He was apprehended along with three others Mohit Deora (his brother), Amit Kumar Gupta, and Amit Agrawal following ED raids in Ranchi, Jamshedpur, and Kolkata. During those searches, the agency seized Rs 8.98 crore in cash, attached immovable assets worth Rs 5.29 crore, and froze bank balances of Rs 62.90 lakh across various accounts allegedly linked to the scam.
ED Filed Chargesheet on July 5 Against Four Accused in Ranchi Court
Subsequently, on July 5, 2025, the ED filed a prosecution complaint (chargesheet) before the Special PMLA Court in Ranchi, formally naming the four accused. The chargesheet details how the group allegedly created a complex network of shell companies using dummy directors and forged documents to carry out fake transactions on paper.
Fresh Evidence Triggered Thursday’s Multi-City Search Operations
Thursday’s searches were triggered by fresh intelligence inputs suggesting the involvement of additional individuals and entities in laundering the scam’s proceeds. ED teams searched residential and commercial premises in Mumbai, as well as undisclosed properties in Ranchi, Jamshedpur, and Kolkata.
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Incriminating Documents, Digital Devices Seized During Raids
Incriminating documents, digital devices, and financial records were recovered during the operation, sources said, adding that these materials are being analysed to track the money trail and identify end beneficiaries.
While ED has not confirmed any fresh arrests or attachments as of Thursday evening, officials said that the investigation is at a “crucial stage” and further action is expected soon.
