The ED has exposed a big fraud running across the country. The case is related to fake input tax credit (ITC) of Rs 650 crore. The agency says that through this racket, fake ITC has been delivered to big multinational companies.

ED raided Arunachal Pradesh, Delhi, Haryana, Tamil Nadu and Telangana on Thursday (September 11, 2025). This action was taken on a total of 10 locations. This investigation is going on under a money laundering case. The investigation began when the ED received a complaint against a Guwahati company M/s Amit Traders.

Company fake address, shopping fake

When the officers reached there, it was found that the address of the company is fake and the company is not actually present. This company passed the ITC by showing fake purchases. ED said that this company was associated with M/S Shri Ram Enterprises, which took a fake ITC of Rs 116 crore by making a fake bill of Rs 700 crore.

In Arunachal Pradesh, owners of Rainbow Enterprises and AK Enterprises admitted that they took a fake ITC of Rs 2-2 crore without buying and selling goods. In Telangana, M/S Winned Automobile confessed that it showed a fake turnover of Rs 110 crore. The company made manufacturing and cell papers of fake vehicles and then distributed the money by claiming the GST refund.

Fake company in Haryana, Delhi and Tamil Nadu

In Haryana, Jai Shri Balaji Traders and Jai Shri Balaji Trading Company showed fake turnover of 87 crore and 62 crores and further gave fake ITC to big companies. In Delhi, the company’s record of the company named M/S Prisha Egim showed a turnover of 200 crores, but the partners themselves said that they have no information about these transactions and suspect that their company’s name was used through dummy companies.

In Tamil Nadu, Tanor Engineering took a fake ITC of 4 crores. ED freezed property worth 3 crore and Rs 36 lakh bank balance from here. The ED says that this racket is misused in a planned manner of the GST system. It adopted a way to show fake bills, fake e-way bills and money.

Bank accounts freeze after raids

It is clear from the initial investigation that even the fake ITC has been passed up to the big real MNCs and the investigation is on. After the raid, the ED freezed several bank accounts. Property seized papers and documents related to many companies have taken possession. The agency suspects that some GST officials may also get commission in this entire game.

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