Delhi GST Fraud: Rs 645-Crore Fake Input Tax Credit Racket Busted, Key Operator Arrested
The Directorate General of GST Intelligence (DGGI) has uncovered a massive Rs 645-crore fake Input Tax Credit racket operated through 229 dummy firms, with key conspirator Mukesh Sharma arrested and sent to judicial custody.
Key Takeaways
- Rs 645 crore fraudulent Input Tax Credit scheme busted in Delhi
- 229 dummy GST-registered firms involved in the racket
- Key operator Mukesh Sharma arrested on November 11, 2025
- Possible money laundering through NGO and political outfit under investigation
Massive Fraud Operation Uncovered
The DGGI’s Delhi Zonal Unit exposed the elaborate network following coordinated search operations across multiple locations in Delhi. Officials discovered incriminating documents, digital devices, and financial ledgers that revealed the syndicate’s operations.
According to the Finance Ministry statement, the investigation uncovered 162 mobile phones likely used for OTP verification, 44 digital signatures, and over 200 cheque books from various firms involved in the scam.
How the Racket Operated
The bogus entities issued invoices without any actual supply of goods or services, enabling the fraudulent passing of ineligible Input Tax Credit. The preliminary investigation estimates the fraud amount at approximately Rs 645 crore, causing substantial revenue loss to the government.
Evidence indicates Mukesh Sharma orchestrated the entire network, managing GST registrations, filing returns for dummy firms, handling banking transactions, and facilitating the circulation of illicit funds through multiple layers.
Arrest and Judicial Proceedings
Mukesh Sharma was arrested on November 11, 2025, under relevant sections of the CGST Act, 2017. Since the offences are cognizable and non-bailable, he has been sent to judicial custody.
Money Laundering Angle Emerges
The investigation has revealed a potential money laundering component, with fraud proceeds allegedly being rotated through an NGO and a political outfit. authorities continue to investigate this aspect of the case.
Further investigation is underway to identify all individuals involved in the sophisticated financial fraud operation.
