The Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit, has uncovered a racket for fraudulently availing Input Tax Credit (ITC) worth approximately Rs. 645 crore through a network of 229 dummy GST-registered firms controlled by a Delhi-based syndicate. Officers conducted coordinated search operations, unearthing incriminating documents, digital devices (including 162 mobile phones), 44 digital signatures, and over 200 cheque books of various firms. Shri Mukesh Sharma, identified as a key conspirator, has been arrested under Sections 132(1)(b) and 132(1)(c) of the CGST Act, 2017 on 11.11.2025 and sent to judicial custody. The investigation has also revealed a potential money-laundering component, with proceeds allegedly rotated through an NGO and a political outfit, and further investigation is ongoing. Release ID: 2189791. Visitor Counter: 1920.
Key Entities Referenced
Input Tax Credit (ITC): Scheme for availing credit on taxes paid on inputs used in business, subject to fraudulent availment in this case.
DGGI Delhi Zonal Unit: Directorate General of GST Intelligence, Delhi Zonal Unit, the primary investigating agency in the case.
CGST Act, 2017: Central Goods and Services Tax Act, the main law under which the offences were registered.
Ministry of Finance
DGGI Delhi Zonal Unit uncovers racket for
fraudulently availaing Rs. 645 crore ITC; Key
operator arrested
Posted On: 13 NOV 2025 6:46PM by PIB Delhi
The Directorate General of GST Intelligence (DGGI), Delhi Zonal Unit, has uncovered a massive
case of fraudulent availment and passing of Input Tax Credit (ITC) through a web of 229 dummy
GST-registered firms, controlled and operated by a Delhi-based syndicate.
Acting on credible intelligence, DGGI officers conducted coordinated search operations at multiple
premises across Delhi, unearthing huge cache of incriminating documents, digital devices, and
ledgers that established the operation of non-existent firms engaged in issuing invoices without actual
supply of goods or services. This included 162 mobile phones, probably used to get OTPs for
GST/banking purposes, 44 Digital signatures and over 200 cheque books of various firms. The
preliminary findings indicate that these bogusentities were engaged in issuance of invoices without
any actual supply of goods or services, resulting in the fraudulent passing of ineligible ITC amounting
to Rs. 645 crore approx, causing substantial loss to the exchequer.
Investigations have revealed that Shri Mukesh Sharma, a key conspirator, orchestrated the operations
of this network of fake entities. Evidence points to his active role in managing GST registrations and
returns and records of dummy firms, managing banking transactions, and facilitating the circulation
of illicit funds through multiple layers. As the offences of Sh. Mukesh Sharma are cognizable and
non-bailable, he has been arrested on 11.11.25 under Sections 132(1)(b) and 132(1)(c) of the CGST
Act, 2017 and has been sent to judicial custody.
The investigation has also brought to light a possible money-laundering component, wherein proceeds
of the fraud were allegedly rotated through an NGO and a political outfit.Further investigation is
underway.
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NB/KMN
(Release ID: 2189791) Visitor Counter : 1920
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