IT Expert Apprehended in Delhi for Orchestrating Multi-Crore GST Fraud in Jhansi
In a significant breakthrough, Jhansi police have successfully arrested a wanted accused from New Delhi who was deeply involved in a large-scale GST fraud racket. The accused has been identified as Virendra Kumar, a 39-year-old resident of Rohini in Delhi, originally hailing from Sirsa in Haryana. Kumar, who is an IT expert by profession, was produced before the court on Thursday and subsequently sent to judicial custody.
Details of the Fraudulent Scheme and Initial Complaint
The case was initially registered on August 10, 2025, based on a formal complaint filed by GST officer Anil Kumar Yadav at the Navabad police station in Jhansi. The complaint alleged that a sophisticated network had created numerous fake firms using forged documents to obtain GST registration. These bogus entities were then utilized to carry out fictitious supply, sale, and circular trading activities. The primary objective was to fraudulently claim and pass on input tax credit (ITC), resulting in a substantial loss to government revenue.
During the course of the investigation, it was uncovered that several firms, including DK Enterprises, Grasim Industries, and KJ Enterprises, were actively involved in these fake transactions without any actual supply of goods. Through these deceptive activities, outward transactions totaling Rs5.38 crore were falsely recorded, and fraudulent ITC amounting to over Rs1 crore was illicitly passed on.
Extensive Probe Reveals Elaborate Fraud Mechanisms
A deeper probe into the matter revealed that in June 2025 alone, purchases worth Rs5.53 crore were falsely declared from a firm named Shyam Ji Traders. Subsequently, ITC of over Rs1.02 crore, combining both CGST and SGST, was fraudulently claimed in GSTR-3B returns. Assistant Superintendent of Police Areeba Nomaan confirmed that these firms were registered using entirely fake documents and mobile numbers, highlighting the elaborate nature of the scam.
During the arrest operation, law enforcement officials seized critical evidence, including two mobile phones, two laptops, and a staggering 39 SIM cards. These items were allegedly used extensively in the execution of the fraudulent operations.
Confession and Modus Operandi of the Accused
During interrogation, Virendra Kumar confessed to his involvement in the racket. He admitted to procuring SIM cards primarily by luring drug addicts through acquaintances in the outskirts of Delhi, paying approximately Rs300 per SIM. These SIMs were then utilized to register fake companies in collaboration with his associates, identified as Ishu and Sarkar, who are currently absconding. The group allegedly employed these shell firms to manipulate GST filings and illegally avail tax benefits.
Kumar further revealed that he had created between 70 and 80 bogus firms across different parts of the country, establishing fake supply chains to lend credibility to the fraudulent activities.
Connection to Previous Arrests and Ongoing Investigations
This arrest follows a similar case where Kotwali police arrested Neeraj Ranjan of Samaypur Badli, Delhi, on Wednesday. Ranjan was involved in a fraud claiming Rs4.5 crore of ITC after showing fraudulent business deals worth Rs24 crore.
ASP Areeba Nomaan stated, "Three separate cases were lodged in Nawabad, Kotwali, and Prem Nagar police stations by the GST departments on similar frauds. With today's arrest, we have been able to crack all three cases. We are further investigating the involvement of other accused, for which police teams have been dispatched to various locations."
The arrest marks a crucial step in dismantling a widespread GST fraud network that has caused significant financial damage to the government. Authorities continue to pursue leads to apprehend the remaining accomplices and uncover the full extent of the illicit operations.
