The Delhi Police’s Economic Offences Wing (EOW) has busted an alleged GST fraud cartel operating through shell companies and fake invoicing networks, arresting six individuals involved in swindling Rs 128 crore, an official said on Saturday.
The accused allegedly operated fake firms, generating bogus GST invoices, and availing wrongful Input Tax Credit (ITC) without any actual supply of goods or services, EOW in a statement said.
On May 15, EOW teams made several raids at different locations in Delhi-NCR and arrested Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohammad Waseem, and Abid.
Fake firm created using victim’s documents
A case of GST fraud was registered against a fake firm, M/s RK Enterprises, at the EOW Police Station on March 24 under various sections of the BNS.
The complainant alleged that his Aadhaar card, PAN card, electricity bill and biometric details were misused on the pretext of providing him employment in the GST Department, the statement read.
During the investigation, the police found that the firm had been created in September 2025 without the victim’s knowledge and was subsequently used for transactions exceeding Rs 128 crore.
“Wrongful ITC amounting to nearly Rs 10 crore was fraudulently availed through the fake entity,” read the statement.
Probe reveals network of shell companies
The probe, involving technical surveillance, analysis of GST records, banking transactions, email IDs and other digital evidence, revealed that Dixit and Dilip Kumar, still at large, were the main conspirators behind the racket.
The police said Dixit operated a large-scale fake invoicing syndicate from Daryaganj with his brothers and associates and orchestrated the creation of nearly 250 shell companies using forged and fraudulently obtained documents.
Investigators said the accused used these firms for bogus billing, fake GST transactions, and fraudulent ITC claims while concealing the financial trail through multiple bank accounts, mobile numbers and intermediaries.
Amar Kumar and Vibhash Kumar Mitra facilitated the formation of shell firms and bogus GST activities, they said.
Nitin Verma allegedly created and operated multiple fake firms with the help of accountants, while Mohammad Waseem and Abid were involved in providing bank accounts and internet banking credentials for routing fake transactions and proceeds generated through bogus GST activities.
Cash, fake invoices and digital evidence seized
The police said around 50 shell companies and entities used for routing money and fake GST entries have so far been identified.
In their searches, police recovered Rs 51.12 lakh in cash, 15 mobile phones, two laptops, multiple SIM cards, fake stamps, forged documents, huge quantities of fake invoices in physical and digital form, and two cars allegedly used by the accused.
The police statement read, “These firms were allegedly used to generate bogus GST invoices, provide accommodation entries through banking channels, route funds in lieu of cash transactions and file fake GST returns.”
The investigation is still underway to identify other beneficiaries and entities linked to the syndicate, the police said.
Published on May 16, 2026