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ED Arrests Two in Massive GST Input Tax Credit Fraud Scheme
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News18•02-10-2026, 18:30
ED Arrests Two in Massive GST Input Tax Credit Fraud Scheme
- •The Enforcement Directorate (ED) arrested Gyaan Chand Jaiswal alias Babloo Jaiswal and Raaj Jaiswal in connection with a sophisticated GST Input Tax Credit (ITC) fraud case.
- •The investigation, initiated based on complaints from DGGI, Jamshedpur, uncovered a syndicate that created 135 shell companies to issue bogus invoices worth over Rs 5,000 crore.
- •This scheme fraudulently generated and passed on fake ITC amounting to over Rs 734 crore, which was then sold to beneficiary firms to evade GST liabilities.
- •Gyaan Chand Jaiswal and Raaj Jaiswal's group allegedly routed Rs 54.33 crores in fake ITC through their entities and personal accounts, using the proceeds for business activities and property acquisition.
- •Previous actions in the case include searches, seizure of documents and digital devices, freezing of bank balances worth Rs 70 lakhs, and the arrest of four other individuals, with a prosecution complaint filed.
Key Questions Answered
The ED arrested Gyaan Chand Jaiswal and Raaj Jaiswal from its Ranchi Zonal Office following search and seizure operations conducted under the Prevention of Money Laundering Act.
The syndicate created 135 shell companies that issued bogus invoices worth over Rs 5,000 crore, generating and passing on fake Input Tax Credit to the tune of more than Rs 734 crore.
Following their arrest on September 30, the two accused were produced before a Special PMLA Court in Ranchi on October 1, which remanded them to judicial custody.
