THE JHARKHAND STORY DESK
Ranchi, July 5: The Enforcement Directorate (ED) has filed a prosecution complaint against four individuals in connection with a ₹730 crore GST scam. Those named in the chargesheet include the alleged mastermind Shiv Kumar Deora, his son Mohit Deora, and associates Amit Gupta and Amit Agarwal alias Vicky Bhalotia.
According to the ED, the accused created 135 shell companies to show fake business transactions worth ₹5,000 crore, through which they fraudulently availed ₹730 crore in Input Tax Credit (ITC) and laundered money.
Raids Across Jharkhand, Kolkata Led to Key Arrests
On May 8, the ED had conducted raids at various locations in Ranchi, Jamshedpur, and Kolkata related to the scam. During the operation, businessman Amit Agarwal alias Vicky Bhalotia was arrested from Jamshedpur, while Shiv Kumar Deora, Mohit Deora, and Amit Gupta were taken into custody from Kolkata.
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The ED’s investigation revealed that the accused issued GST invoices through their own shell companies without conducting any actual business. They appointed fake directors in these paper companies and in some cases acted as directors themselves. However, control of all these companies remained with the main accused.
To fraudulently claim ITC, they issued invoices for fake transactions amounting to ₹5,000 crore.
Seizure of Cash, Bank Deposits, and Properties Linked to Scam
During the raids, officials seized ₹9 lakh in cash and froze ₹63 lakh deposited in bank accounts linked to the 135 shell companies used in the scam.
Additionally, immovable properties worth ₹5.30 crore, allegedly purchased using laundered money obtained from fake ITC claims, were also confiscated. Further investigation into the scam is underway.
ED Probe Triggered by GST Intelligence Action
The ED began its probe based on an earlier investigation by the Directorate General of Goods and Services Tax Intelligence (DGGI), which had raided the premises of these businessmen in 2023. During that investigation, DGGI unearthed the ₹734 crore GST fraud carried out using fake invoices.
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Based on documents recovered during the raids, Amit Agarwal alias Vicky Bhalotia was arrested in December 2023. Later, Shiv Kumar Deora was arrested in April 2024, followed by the arrest of Amit Gupta and Sumit Gupta the same month. When DGGI officials went to arrest another accused, Vivek Narsaria, he had reportedly absconded before the team arrived.
DGGI has claimed a ₹14 crore recovery from Narsaria. Following controversy over the matter, the Jharkhand High Court directed the state government to investigate the irregularities committed by Narsaria. The DGGI has since challenged the High Court’s decision in the Supreme Court, where the matter is currently under consideration.
