CGST Delhi East Unveils ₹199 Crore Fraud Scheme, Nabs 3 in “Operation Clean Sweep”

In a major crackdown, the Central Goods and Services Tax (CGST) Delhi East Commissionerate revealed a complex network of 48 interconnected fake firms, orchestrating a fraudulent Input Tax Credit (ITC) scheme exceeding ₹199 crores in the recently launched “Operation Clean Sweep.” The operation, initiated by CGST Delhi East, aimed at dismantling a syndicate involved in generating bogus invoices.

Operational Details:

• “Operation Clean Sweep” targeted fake billers based on human intelligence, complemented by data mining and analysis
• The first phase identified 48 non-existent or paper firms engaged in fraudulent invoicing
• Invoices were issued without actual goods or services, violating GST Law
• Three individuals were apprehended, arrested, and remanded to two weeks of judicial custody by the Chief Metropolitan Magistrate Court, Patiala House
• The syndicate’s other members and ring leaders are under investigation

Key Findings:

• The proprietor of M/s M.K. Traders, among the arrested, availed fraudulent ITC exceeding ₹5 crores, a significant portion passed on to other links in the network
• Two other apprehended individuals played pivotal roles in aiding and abetting the syndicate
• Incriminating evidence recovered during the operation included stamps from 55 different firms, multiple SIM cards, and documents like AADHAR cards and third-party electricity bills

Operational Challenges:

• The operation navigated challenging terrains, involving narrow lanes and sensitive areas of Delhi
• The success was attributed to the cooperative efforts of Delhi Police, deploying adequate personnel to assist GST officers

Ongoing Investigations:

• The CGST Delhi East Commissionerate continues to investigate the matter, with further probes underway to unveil the full extent of the syndicate’s activities.