GST fraud: ED raids in Jharkhand, West Bengal and Maharashtra

Aug 7, 2025

Synopsis
The Enforcement Directorate executed new searches across Jharkhand, West Bengal, and Maharashtra concerning a Rs 750 crore GST invoice fraud. These actions, under the PMLA, targeted individuals and firms suspected of laundering illicit funds. This investigation follows the arrest and chargesheet of Shiva Kumar Deora, considered a key figure in the scheme, with initial searches conducted in May.

The Enforcement Directorate on Thursday conducted fresh searches in Jharkhand, West Bengal and Maharashtra as part of a "fake" GST invoices generation case to the tune of Rs 750 crore.

At least a dozen premises in the three states were raided under the Prevention of Money Laundering Act (PMLA).

The case pertains to generation of Rs 750 crore "fake" Input Tax Credit (ITC) involving shell entities and unauthorised financial channels in Jharkhand.

The investigation stems from the arrest of a "key mastermind" of the case Shiva Kumar Deora. He was chargesheeted last month following his arrest in May 2025.

The current searches are being undertaken based on "credible evidence" that indicates involvement of several individuals and firms in laundering "proceeds of crime".

The ED had conducted the first round of searches in this case in May.

[The Economic Times]