ED arrests Jamshedpur businessman, son in ₹734 crore GST scam
Synopsis
The ED has arrested a Jamshedpur businessman and his son in a ₹734 crore GST scam built on fake invoices and shell companies — the father's second arrest in the same case, after a prior June 2024 detention under the GST Act. With raids spanning Jamshedpur, Adityapur, Gamharia, and Kolkata, the net is widening, and more action against linked entities looks imminent.
Key Takeaways
The Enforcement Directorate (ED) arrested Gyanchand Jaiswal (alias Bablu Jaiswal) and his son Raj Jaiswal from Jamshedpur late on 1 October 2026 .
The alleged GST fraud involves approximately ₹734 crore in misused input tax credit through fake invoices and shell companies.
Raids were conducted at premises in Jamshedpur , Adityapur , Gamharia , and Kolkata , including those of auditor Sanjay Parekh .
The case was initially probed by the Directorate General of GST Intelligence (DGGI) ; the ED is acting under the PMLA .
Gyanchand Jaiswal was previously arrested in June 2024 under the GST Act per a Jharkhand High Court order.
The ED had already targeted other businessmen from Jamshedpur and Kolkata linked to the network in 2025 .
The Enforcement Directorate (ED) arrested Jamshedpur businessman Gyanchand Jaiswal, alias Bablu Jaiswal, and his son Raj Jaiswal late Wednesday night in connection with an alleged GST fraud case estimated at approximately ₹734 crore. The duo was brought to Ranchi following medical examinations, with officials confirming on Thursday, 1 October 2026 that they would be produced before a court during the day.
How the Arrests Unfolded
The ED conducted raids across multiple locations — Jamshedpur, Adityapur, Gamharia, and Kolkata — before detaining the father-son duo. Investigators simultaneously searched premises linked to the accused's auditor, Sanjay Parekh, and several other individuals. Business documents, GST-related records, banking and financial transaction documents, and electronic devices were examined during the operation.
The Alleged Fraud: Fake Invoices and Shell Companies
According to officials, the case centres on the alleged use of fake invoices to illegally obtain input tax credit (ITC) without any actual purchase or sale of goods taking place. The ED suspects that large-scale misuse of ITC was carried out through a network of shell companies and paper transactions. The agency is actively tracing the associated money flow through these entities.
The initial investigation was conducted by the Directorate General of GST Intelligence (DGGI), Jamshedpur, before the ED took over proceedings under the Prevention of Money Laundering Act (PMLA). According to a 2024 order of the Jharkhand High Court, Gyanchand Jaiswal had already been arrested in June 2024 in a case registered under the GST Act and was subsequently remanded to judicial custody.
A Widening Net: Earlier Action in 2025
This is not an isolated sweep. The ED had already taken action against several other businessmen from Jamshedpur and Kolkata in connection with the same network in 2025. Investigators reportedly uncovered multiple companies and fraudulent transactions linked to the wider racket. The latest arrests signal that the agency's investigation continues to expand in scope and geography.
What Happens Next
The ED is currently interrogating Gyanchand Jaiswal and Raj Jaiswal to gather information about the alleged fraudulent GST transactions and the flow of funds. Further arrests or action against linked entities cannot be ruled out as the probe deepens.
Point of View
And ₹734 crore is a figure large enough to suggest an organised network, not a one-off billing mismatch. The simultaneous searches in Kolkata point to inter-state layering of funds, a pattern the PMLA is specifically designed to unravel. What this case will ultimately test is whether enforcement action translates into recovery — past GST fraud prosecutions have often secured arrests but struggled to claw back the actual proceeds.
NationPress
1 Oct 2026
Frequently Asked Questions
Who has the ED arrested in the Jharkhand GST fraud case?
The ED arrested Gyanchand Jaiswal , alias Bablu Jaiswal, a businessman from Jamshedpur , and his son Raj Jaiswal late on 1 October 2026. Both were brought to Ranchi after medical examinations and were to be produced in court the same day.
What is the ₹734 crore GST scam about?
The case involves the alleged use of fake invoices to fraudulently claim input tax credit (ITC) without any real purchase or sale of goods. The ED suspects the fraud was executed through a web of shell companies and paper transactions, with the Directorate General of GST Intelligence (DGGI) having conducted the initial investigation.
Was Gyanchand Jaiswal arrested before?
Yes. According to a 2024 order of the Jharkhand High Court, Gyanchand Jaiswal was arrested in June 2024 in a case registered under the GST Act and was subsequently remanded to judicial custody. The latest arrest is under the Prevention of Money Laundering Act (PMLA).
Which locations were raided during the ED operation?
The ED searched premises in Jamshedpur, Adityapur, Gamharia, and Kolkata. The searches covered locations linked to Gyanchand Jaiswal, his auditor Sanjay Parekh, and several other individuals associated with the alleged fraud network.
What happens next in the case?
The ED is interrogating the two accused to trace the full flow of fraudulent GST transactions and associated funds. The agency has reportedly already acted against other businessmen from Jamshedpur and Kolkata linked to the same network in 2025, and further action is possible as the probe widens.
