New Delhi: The Enforcement Directorate on Tuesday carried out extensive search operations across Jharkhand, Manipur and Kolkata as part of its probe into a large-scale fake Input Tax Credit (ITC) scam involving an alleged fraud of nearly ₹658 crore, officials said.
The searches were conducted at premises linked to individuals and firms suspected of having a role in the fraudulent network. The operation is being spearheaded by the ED’s Itanagar unit with assistance from local police authorities in the respective states.
Investigators said the case revolves around firms accused of creating and claiming bogus ITC using fake invoices without any actual movement of goods or provision of services. Such practices not only cause significant losses to the public exchequer but are also commonly associated with money laundering and the use of shell companies to route illicit funds.
The probe stems from an FIR registered at the Itanagar police station in Arunachal Pradesh. The complaint names Rakesh Sharma and Ashutosh Kumar Jha, along with other unidentified persons, for their alleged involvement in a criminal conspiracy that includes cheating and forgery of official documents.
According to the FIR, the alleged fraud was carried out through M/s Siddhi Vinayak Trade Merchants, described by investigators as a non-existent firm. The entity is accused of availing ITC worth ₹99.31 crore on the strength of fake invoices amounting to ₹658.55 crore. The transactions reportedly involved as many as 58 shell entities operating across multiple states.
Sources said the agency is now examining further layers of fake ITC claims and tracking the flow of funds suspected to have been laundered through the complex network. More searches and questioning are likely as the investigation progresses.
