GST: Key Operator Arrested for Rs. 645 crore ITC Fraud, Signs of Money Laundering via NGO and Political Group
The Directorate General of GST Intelligence department (DGGI) in Delhi found a Big scam. A group of people created 229 fake companies that existed only on paper. They used these fake companies to cheat the government by claiming fake GST Input Tax Credit (ITC).
Based on reliable information, the officers of the GST Intelligence department carried out raids at many places across Delhi. During these searches, they found a huge amount of evidence showing that several firms were fake and did not actually exist in the real world. These fake firms were created only for the purpose of cheating the GST system.
During investigations, officers recovered many suspicious items, including documents, digital records, and account books. The team also seized 162 mobile phones, which were used to receive OTPs needed for GST registrations and banking activities. Along with that, they found 44 digital signatures and 200 cheque books belonging to different firms, all of which pointed toward a large organised network of fraud.
However, according to earlier investigations, these fake companies were issuing invoices to each other without really buying or selling any goods or services. These fake invoices were used to illegally claim GST Input Tax Credit (ITC). Because of this fake invoicing activity, Rs. 645 crore worth of ineligible ITC was wrongly passed on.
Investigations also found that Mukesh Sharma was a main planner behind a network of fake companies. Evidence shows that he handled their GST registrations, GST returns, and bank transactions and helped move illegal money through many layers. Since the offences he committed are serious and non-bailable, he was arrested on November 11, 2025 under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017 and has now been sent to judicial custody.
The investigation has also found signs of possible money laundering. It appears that the money earned through the fraud was moved around using an NGO and a political group. However, the investigation is still ongoing.
