Crime branch seeks key info from GST Dept in Rs800cr Biz Scam

Time of India

24-05-2025

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Nagpur: Intensifying its investigation into a massive Rs800 crore business scam, the Nagpur crime branch has sought critical information from the GST department regarding the operations of a fake business cartel.
The syndicate, responsible for creating 86 fictitious companies, executed bogus transactions — primarily in the iron and steel sector — to fraudulently claim tax setoffs without depositing any GST, police sources said.
The investigation team has requested the GST Dept to provide detailed business records, accounts, and transaction histories of the accused, who face charges of cheating and related offences. The cartel's elaborate modus operandi involved fake invoices, sham transportation receipts, and fictitious companies fronted by office boys and low-level employees posing as proprietors.
Deputy commissioner of police (crime), Rahul Maknikar, expressed shock at the syndicate's ability to secure substantial GST set offs without actual tax payments. "Our probe uncovered that these fake entities issued fraudulent invoices and transferred funds to other sham companies, only to withdraw them later. The set offs were likely claimed against these bogus documents," Maknikar said.
The DCP emphasised that the investigation is now focusing on whether these GST benefits were approved due to lax verification or complicity from lower-rung taxation officials.
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"We cannot rule out an external nexus of some officials with the syndicate," he added, stating that a reply from the GST department would help unwrap a bigger scam inflicting losses to the govt exchequer.
A crime branch team, led by senior inspector Kamlakar Gaddime, recently conducted a search at the office of Anshul Mishra, a key accused who remains on the run. "We seized documents and records that will aid in piecing together the scam's intricacies," Gaddime said.
The scale of the fraud has raised alarm in Nagpur's business community. The syndicate's ability to manipulate GST claims sparked concerns about vulnerabilities in the tax system, prompting calls for stricter oversight. As the crime branch digs deeper, the focus remains on dismantling the cartel and identifying any collaborators within the taxation framework.
With Mishra still at large and critical documents under review, the investigation promises to uncover further details about one of Nagpur's most audacious financial frauds.