The Enforcement Directorate (ED) on Thursday carried out search operations across Arunachal Pradesh, Haryana, Delhi, Tamil Nadu and Telangana in connection with a massive fake Input Tax Credit (ITC) scam worth around ₹650 crore, officials said.
The raids, which began early in the day, targeted premises of individuals and firms suspected of being linked to the fraud. ED’s Guwahati unit is spearheading the operation in coordination with state police forces.
According to investigators, the case involves firms accused of generating and availing fraudulent ITC through fake invoices without any actual supply of goods or services. Such bogus claims, apart from draining the exchequer, are often tied to money laundering and shell company networks.
The searches are being conducted under the Prevention of Money Laundering Act (PMLA), based on inputs shared by GST authorities.
Fake ITC rackets have become a recurring concern for enforcement agencies. In past cases, fraudsters floated shell firms to illegally pass on credits, creating a parallel chain of bogus transactions. Officials said Thursday’s crackdown aims to expose the wider network and identify the ultimate beneficiaries.
Just last month, the ED raided 12 locations across Jharkhand, West Bengal and Maharashtra in a similar ₹750 crore ITC scam. That case was linked to shell companies and illegal financial channels, with alleged mastermind Shiva Kumar Deora arrested in May 2025 and later charge sheeted.
Investigators said his interrogation and seized records had pointed to the involvement of several others in laundering the proceeds of crime.
Source #TOI
