Rs.800 Crore GST Scam: ED Raids Jharkhand and West Bengal in Fake ITC Claim Fraud
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On Thursday, the Enforcement Directorate (ED) launched a major crackdown on a huge tax fraud case involving the Goods and Services Tax (GST). The ED raided nine different places—four in Jharkhand (including three in the capital city Ranchi and one in Jamshedpur), and five in West Bengal—as part of their ongoing investigation.
What is the Case About?
This operation is part of a probe into a massive ₹800 crore scam. According to ED sources, the fraud involves fake claims of input tax credit (ITC). ITC is a benefit that businesses can claim to reduce the amount of tax they have to pay. In this scam, people allegedly created fake invoices (bills) to claim tax credit without actually doing any real business.
The total amount of fake invoices generated is said to be over ₹14,325 crore. These were reportedly made using shell companies—companies that exist only on paper and have no real operations. The people involved created fake documents, claimed the tax credit, and then shut down these fake companies to avoid being caught.
Who is Involved?
Some of the names under investigation include:
- Shivkumar Deora
- Sumit Gupta
- Amit Gupta
- And several others
During the raids, ED officials seized important documents, which they are now closely examining to gather more proof.
Security and Past Actions
To ensure the safety of the officers involved in the raids, the Central Reserve Police Force (CRPF) was deployed at all the locations. While the ED had previously conducted raids in West Bengal last year related to this case, this is the first major operation in Jharkhand.
Earlier Findings
This is not the first time authorities have uncovered such frauds:
- Last year, the GST Directorate found a ₹100 crore fake invoice scam in Sarubdera (Ramgarh) and Jharia (Dhanbad).
- Another ₹150 crore scam was found in Jamshedpur and Adityapur industrial areas.
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What’s Next?
As of now, the ED has not made any official statement, since the investigation is still ongoing. Officials are expected to share more information once they complete reviewing the seized materials.
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