The Economic Offences Wing (EOW) of Delhi Police on Saturday, 17 May 2025, dismantled a large-scale GST fraud syndicate allegedly responsible for generating bogus invoices and fraudulent Input Tax Credit (ITC) claims worth nearly ₹128 crore. Six accused persons were arrested in connection with the case following coordinated raids across Delhi-NCR on 15 May 2025.

How the Fraud Was Operated

According to investigators, the syndicate created and operated a network of shell companies and fake business entities to generate bogus GST invoices without any actual supply of goods or services. Investigations have so far identified approximately 50 shell companies allegedly used to route money through fictitious transactions and cash dealings.

The racket centred on a fraudulent proprietorship firm, M/s R.K. Enterprises, set up using the identity and financial documents of an unsuspecting individual — reportedly lured on the false pretext of employment in the GST Department. The victim's Aadhaar card, PAN card, electricity bill, and biometric details were allegedly misused in September 2025 to register the firm without his knowledge or consent.

Key Recoveries and Evidence

During the operation, police recovered cash amounting to ₹51.12 lakh, 15 mobile phones, two laptops, fake stamps, forged documents, multiple SIM cards, fake invoices, and two cars. Technical surveillance and analysis of GST records, banking transactions, email IDs, and digital evidence guided the investigation.

A case was registered on 24 March under Sections 316(2), 318(4), 336(3), 340(2), and 61(2) of the Bharatiya Nyaya Sanhita (BNS) at Police Station EOW.

The Accused and Their Roles

Investigators identified Raj Kumar Dixit, a 43-year-old resident of Daryaganj, Delhi, as the alleged mastermind. Despite having studied only up to Class 9, he allegedly orchestrated nearly 250 shell companies using forged documents for bogus GST transactions and fake ITC claims, operating from his office in Daryaganj with associates and brothers.

Dilip Kumar and Raj Kumar Dixit were identified as the primary conspirators behind the creation of fake firms, bogus GST invoicing, and fraudulent GST returns. Amar Kumar, originally from Mathura, Uttar Pradesh, allegedly helped register nearly 200 shell firms using identity documents of unsuspecting individuals in exchange for money. Vibhash Kumar Mitra, originally from Panna, Madhya Pradesh and residing in Vasundhara, Ghaziabad, allegedly assisted in creating shell firms and handling bogus GST registrations after failing to qualify as a Chartered Accountant.

Nitin Verma of Shahdara allegedly operated fake firms and bogus billing networks, while Mohd. Waseem of the Jama Masjid area in Delhi allegedly handled bank accounts and shell entities used for routing fraudulent transactions. Abid, a resident of the Uncha Challan area in Delhi and engaged in the meat supply business, allegedly provided four bank accounts used for routing funds through shell companies.

The Raids and Arrests

Multiple teams comprising Inspector Ramkesh, Inspector Kishanveer, SI Naveen, SI Dipesh, and SI Rahul, under the leadership of ACP Virender Kadyan and senior EOW officers, conducted coordinated raids across Delhi-NCR. The accused — Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohd. Waseem, and Abid — were apprehended from different locations on 15 May, interrogated, and formally arrested.

What Comes Next

The EOW has confirmed that further investigation is underway to identify additional beneficiaries, linked entities, and other members associated with the syndicate. Authorities said the racket caused significant losses to the government exchequer through fictitious billing and fraudulent financial transactions. The scale of the network — spanning hundreds of shell companies and multiple states — suggests the probe is far from over.