Enforcement Directorate arrests two in Rs 5,000 crore GST fraud case

The Enforcement Directorate (ED) has arrested two individuals, Gyaan Chand Jaiswal (alias Babloo Jaiswal) and Raaj Jaiswal, in connection with a major Goods and Services Tax (GST) Input Tax Credit (ITC) fraud investigation in Jharkhand and West Bengal.

The investigation, initiated following complaints from the Directorate General of GST Intelligence, uncovered a syndicate that utilized 135 paper-only shell companies to issue bogus invoices exceeding Rs 5,000 crore. This scheme allegedly allowed the group to fraudulently generate and pass on fake ITC worth over Rs 734 crore, which was then sold for commission to help other firms evade GST liabilities.

Following search and seizure operations in Jamshedpur and Kolkata, the accused were produced before a Special PMLA Court in Ranchi and remanded to judicial custody.