Massive Financial Fraud Uncovered in Ludhiana
Central investigators have exposed a massive ₹3,089 crore financial fraud syndicate operating a complex network of phantom firms, fraudulent tax invoicing, and suspicious cash withdrawals. The Enforcement Directorate (ED) filed a first-information report (FIR) at the Jamalpur police station targeting masterminds Amit Kumar Goyal and his brother Manish Kumar, alongside accomplices Gaurav Aggarwal, Gurdeep Singh, Balwant Singh, and two unidentified associates. The suspects face charges of cheating, forgery, and criminal conspiracy under the Indian Penal Code.
How the Syndicate Operated
An ED investigation revealed the syndicate had systematically manufactured fraudulent goods and services tax (GST) invoices to layer high-value funds through 27 dummy business entities. The money was then routed into agricultural produce market committee (APMC) bank accounts across multiple IDFC First Bank branches. By utilising APMC accounts, the syndicate executed cash withdrawals totalling more than ₹3,089.5 crore across 25 accounts to intentionally bypass tax deducted at source (TDS) regulations under the Income Tax Act.
Fake Input Tax Credit and Shell Entities
Data shared by the directorate general of GST intelligence (DGGI) showed the ring generated about ₹108.5 crore in fraudulent Input Tax Credit on fake billing worth almost ₹721 crore. While two of the dummy operations — NR Steels and Goyal Steel Industries — were registered directly to Amit Goyal’s tax profile, the remaining 25 entities were built by exploiting the identity documents of vulnerable individuals. The illicit pipeline functioned by generating fake invoices, receiving bank transfers, cycling the capital through shell entities into agricultural accounts, and withdrawing physical currency. The cash was then returned to beneficiary firms after the syndicate deducted a laundering commission.
Confession and Evidence Seized
In statements recorded under the Foreign Exchange Management Act (FEMA), Amit Kumar Goyal admitted to operating as an illicit entry operator since 2018. He confessed that no physical goods were ever traded and that the entire operation existed purely on paper to fabricate legitimate business activity. Raids conducted during the multi-agency probe yielded a massive logistical haul, including 54 cheque books, 46 ATM cards, multiple forged identity cards, corporate stamps, and digital hardware used to orchestrate the dummy firms. The investigating officer, assistant sub-inspector Gurmeet Singh, confirmed that local police had launched the formal criminal case following the comprehensive central investigation.
