The GST fraud came to light in 2023 when a DGGI investigation exposed fake billing by shell firms, leading the ED to uncover money laundering, with the accused using proxy directors while retaining full control

The Enforcement Directorate (ED) has filed a comprehensive chargesheet against four individuals accused of orchestrating a ₹730 crore Goods and Services Tax (GST) fraud involving shell companies, fake transactions, and illegal Input Tax Credit (ITC) claims.

The key accused—Shiv Kumar Devra, his son Mohit Devra, Amit Gupta, and Amit Agarwal (alias Vicky Bhalotia)—allegedly operated 135 shell companies with no genuine business activity. According to the ED, these entities were used to fabricate trade worth ₹5,000 crore, enabling fraudulent ITC claims and substantial tax evasion.

The scam first surfaced in 2023 following an investigation by the Directorate General of GST Intelligence (DGGI), which unearthed fake billing practices linked to these companies. The ED later expanded the probe to include money laundering aspects. Officials stated that the accused used fake directors to front the companies while maintaining full operational control.

Multi-city raids uncover assets

On May 8, ED teams conducted coordinated raids across Ranchi, Jamshedpur, and Kolkata, leading to the arrest of all four accused. During the searches, authorities seized ₹9 lakh in cash and froze ₹63 lakh across bank accounts linked to the shell firms. Additionally, immovable properties worth ₹5.30 crore—believed to be proceeds of crime—were confiscated.

The chargesheet outlines how these assets were allegedly acquired and laundered through fictitious transactions, creating a complex financial trail designed to mask illicit gains. It also details the evidence collected, including financial records and digital data, which form the basis of the ED’s prosecution.

Meanwhile, the case has widened with the DGGI also naming Vivek Narsaria, from whom ₹14 crore was reportedly recovered. Narsaria’s evasion of arrest led to a legal standoff, with the High Court transferring his case to the state government. The DGGI has challenged this in the Supreme Court, where the matter is pending.

With the chargesheet now filed, judicial proceedings are expected to intensify against the core accused, marking a key step in India’s broader crackdown on GST-related financial fraud.