ED Files Chargesheet in ₹5,000 Crore GST Scam | Fake Invoices & Money Laundering Uncovered

ED Files Chargesheet in ₹5,000 Crore GST Scam; Major Breakthrough in Jharkhand Probe

Ranchi, July 5, 2025 — In a major development, the Enforcement Directorate (ED) has filed a detailed chargesheet in a massive ₹5,000 crore GST scam, marking a significant step forward in one of the biggest tax evasion cases to hit Jharkhand and West Bengal in recent years. The scam involves the fraudulent generation of fake invoices and illegal input tax credit (ITC) claims through shell companies, with the illicit proceeds being laundered across various accounts.

The ED has submitted the chargesheet under the Prevention of Money Laundering Act (PMLA), 2002, naming several key accused including Shiv Kumar Deora, Mohit Deora, and Amit Gupta, all of whom are now under judicial custody. These individuals allegedly played a central role in operating a vast network of bogus firms that facilitated the creation of fake GST invoices without the actual supply of goods or services.

Fake Invoices Worth Over ₹14,000 Crore

As per ED findings, fake invoices totaling over ₹14,000 crore were generated by these entities, resulting in fraudulent ITC claims worth approximately ₹800 crore. The scam spans multiple cities, with operations traced to Ranchi, Jamshedpur, and Kolkata. The accused reportedly established dozens of shell companies using forged documents and dummy directors to simulate commercial transactions and claim GST refunds illegally.

Raids, Seizures, and Arrests

In a coordinated operation conducted last month, ED teams carried out searches at nine premises across Jharkhand and West Bengal. During the raids, investigators recovered incriminating documents, digital records, electronic devices, and transaction logs linked to the suspected companies. Following the searches, three of the prime accused were arrested from Kolkata and produced before a special PMLA court, which later sent them to jail.

Money Laundering Trail Under Scanner

The chargesheet outlines how the illegally acquired funds were allegedly routed through layered banking transactions, shell entities, and benami accounts to conceal the origin of the money. Investigators believe that the scam not only caused massive losses to the exchequer but also enabled money laundering through hawala channels and fake exports.

Sources within the ED have confirmed that assets identified as proceeds of crime are being traced, and efforts are underway to attach properties linked to the accused. Bank accounts, digital wallets, and other financial instruments are also under scrutiny.

Further Action Likely

With the first chargesheet now filed, the ED is preparing for further rounds of legal action. Officials suggest more names could be added in the supplementary chargesheet as the investigation progresses. Notices have also been issued to a few Chartered Accountants and consultants believed to have facilitated documentation and compliance for the shell companies.

This case marks one of the most significant steps in the central government’s crackdown on GST fraud and tax evasion. Authorities have reiterated their commitment to investigating financial crimes that undermine the integrity of the country’s taxation system.