Key figure arrested in Rs 325 crore GST fraud case; highlights shell company scheme

Bhubaneswar: The directorate general of GST intelligence (DGGI), Bhubaneswar zonal unit, has arrested a key figure in a massive GST fraud case of Rs 325 crore. The accused, identified as Nilesh Yogesh Jagiwala, was arrested in Mumbai on Wednesday.The operation involved coordinated searches across multiple locations in Mumbai. Investigation revealed that Jagiwala orchestrated a sophisticated scheme involving over 105 shell companies. These entities were used to generate fraudulent input tax credit (ITC) through the use of forged identity documents and dummy directors.“The network operated almost entirely through virtual means, creating an illusion of legitimate business activities without any real physical operations,” an official statement from DGGI issued on Friday read.Key elements of the fraud included the acquisition of dormant companies with active GSTINs, remote filings to replace genuine directors with dummies, and centralised control of GST portal access via operator-controlled SIM cards.The directorate said that the scheme also involved the mass generation of fake invoices, staged banking transactions and subsequent cash reversals to obscure the identities of the ultimate beneficiaries.

During the searches in Mumbai and Pune, investigators seized a substantial amount of incriminating evidence including fake company seals, multiple mobile phones and SIM cards linked to GST registrations, digital records, and bank account details.This arrest follows the earlier detention of a woman in Pune on Oct 17, who is believed to be an accomplice of Jagiwala and an operational coordinator within the network. Both are currently in judicial custody.