Jharkhand: ED arrests Jamshedpur businessman, son in ₹734 crore GST scam
Synopsis
A Jamshedpur businessman and his son are now in judicial custody after the ED arrested them in an alleged ₹734 crore GST fraud built on fake invoices and shell companies. With raids spanning Jamshedpur, Adityapur, Gamharia, and Kolkata — and multiple businessmen already actioned in 2025 — investigators say this is a wide network, not an isolated case.
Key Takeaways
Gyanchand Jaiswal (alias Bablu Jaiswal) and his son Raj Jaiswal were arrested by the ED on 30 September 2026 in an alleged ₹734 crore GST fraud .
A Special PMLA Court sent both to judicial custody after they were produced on Thursday .
The fraud allegedly involved fake invoices to claim input tax credit (ITC) without actual goods transactions, routed through shell companies .
Raids were conducted in Jamshedpur , Adityapur , Gamharia , and Kolkata ; premises of auditor Sanjay Parekh were also searched.
Gyanchand Jaiswal was previously arrested in June 2024 under the GST Act, per a Jharkhand High Court order.
The ED had already taken action against other businessmen from Jamshedpur and Kolkata in this case in 2025 .
The Enforcement Directorate (ED) arrested Jamshedpur businessman Gyanchand Jaiswal, also known as Bablu Jaiswal, and his son Raj Jaiswal on 30 September 2026 in connection with an alleged GST fraud worth approximately ₹734 crore. A Special PMLA Court subsequently sent both to judicial custody after they were produced for custody proceedings on Thursday, officials confirmed.
How the Arrests Unfolded
The ED conducted raids across multiple locations — including Jamshedpur, Adityapur, Gamharia, and Kolkata — before taking the duo into custody. Following mandatory medical examinations, the accused were transported to Ranchi, where they were interrogated about the alleged fraudulent GST transactions and the associated money trail. Officials said the agency questioned them at length before producing them before the Special Court.
The Alleged Fraud: Fake Invoices and Shell Companies
According to the ED, the case centres on the alleged use of fake invoices to claim input tax credit (ITC) without any actual purchase or sale of goods taking place. Investigators suspect large-scale misuse of ITC was carried out through a network of shell companies and paper transactions. The initial probe was led by the Directorate General of GST Intelligence (DGGI), Jamshedpur, before the ED took over under the Prevention of Money Laundering Act (PMLA).
Evidence Seized and Associates Searched
During the Wednesday operation, the ED searched premises linked to Gyanchand Jaiswal, his auditor Sanjay Parekh, and several other individuals. Investigators examined business documents, GST-related records, banking and financial transaction files, and electronic devices. The agency has reportedly uncovered several companies and fraudulent transactions linked to the network, officials said.
Prior Legal History and Wider Investigation
This is not the first time Gyanchand Jaiswal has faced legal action in this matter. According to a 2024 order of the Jharkhand High Court, he was arrested in June 2024 in a case registered under the GST Act and was remanded to judicial custody at that time. The ED also took action against several other businessmen from Jamshedpur and Kolkata in connection with this case in 2025, indicating that investigators believe the alleged fraud network extends well beyond the Jaiswal family. The agency continues to map the full scale of transactions and entities involved.
Point of View
Not just traditional financial crime. What stands out here is the recidivism angle: Gyanchand Jaiswal was already arrested under the GST Act in June 2024 and was back in investigators' crosshairs within months, suggesting bail conditions and departmental proceedings alone have not been a sufficient deterrent. The involvement of an auditor and multiple shell companies across Jharkhand and West Bengal also points to a structured ecosystem, not opportunistic fraud. The real test for the agency is whether the money trail leads to asset attachment of a scale that meaningfully recovers the alleged ₹734 crore.
NationPress
2 Oct 2026
Frequently Asked Questions
Who was arrested in the Jharkhand ₹734 crore GST scam?
The ED arrested Jamshedpur businessman Gyanchand Jaiswal, also known as Bablu Jaiswal, and his son Raj Jaiswal on 30 September 2026 in connection with an alleged ₹734 crore GST fraud. A Special PMLA Court subsequently remanded both to judicial custody.
What is the alleged modus operandi in the Jamshedpur GST fraud case?
Investigators allege that fake invoices were used to claim input tax credit (ITC) without any actual purchase or sale of goods, with transactions routed through a network of shell companies. The initial probe was carried out by the Directorate General of GST Intelligence (DGGI), Jamshedpur.
Under which law has the ED made these arrests?
The ED acted under the Prevention of Money Laundering Act (PMLA). The original GST investigation was conducted by the DGGI, Jamshedpur, before the money-laundering angle brought the ED into the case.
Was Gyanchand Jaiswal previously arrested in this case?
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 remanded to judicial custody at that time. The latest arrest by the ED is a fresh action under PMLA.
How wide is the alleged fraud network?
The ED has reportedly uncovered several companies and fraudulent transactions linked to this network. The agency also took action against other businessmen from Jamshedpur and Kolkata in connection with the same case in 2025, indicating the alleged network spans multiple cities.
