ED raids six locations in Ranchi in Rs 800 crore GST scam probe

Ranchi, Aug 7 The Enforcement Directorate (ED) on Thursday launched a fresh crackdown in the Rs 800 crore Goods and Services Tax (GST) scam, conducting raids at six locations across Ranchi.

The raids target individuals linked to Kolkata-based Shiv Kumar Deora, believed to be the mastermind behind the multi-crore scam.

One of the key premises searched includes the residence-cum-office of businessman Krishna Thakkar on the fourth floor of Krishna Apartment in the P.P. Compound area, a major residential and commercial hub in Ranchi. Simultaneous operations are underway at five other locations in the city.

Sources indicate that coordinated raids are also being carried out at locations in Kolkata and Mumbai. This fresh round of enforcement action follows evidence and documents gathered during the first phase of the investigation.

Earlier, the ED had arrested several individuals in connection with the scam, including Vicky Bhalotia of Jugsalai (Jamshedpur), Gyanchandra Jaiswal alias Bablu Jaiswal, Kolkata businessman Shiv Kumar Deora, Amit Gupta, and Sumit Gupta.

The investigation revealed that the accused operated a network of shell companies to generate fake invoices and claim Input Tax Credit (ITC) without conducting any actual business. This fraudulent mechanism was used to evade taxes on a massive scale.

Officials say that many more individuals were involved in expanding and operating the scam, which spanned multiple states. With the Preliminary Investigation complete, the ED has now moved into the second phase of its probe, aiming to uncover the wider network behind the fraud.

Authorities believe that this operation may lead to further revelations and arrests in the coming days.

Notably, just last month, the GST Intelligence team arrested Ranchi-based businessmen Lav Agarwal and Gulbahar Malik in a separate but related case linked to the same scam network.

Earlier on March, 2024, Jamshedpur regional unit, had busted a racket of GST fraud of Rs 132 crore and arrested Shiv Kumar Deora, who had committed the multi-crore fraud by generating fake invoice bills in the name of dummy companies.

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