In a major crackdown on tax evasion, the Delhi Government’s Department of Trade and Taxes has uncovered a ₹14 crore Goods and Services Tax (GST) refund fraud, retrieving ₹1.16 crore and arresting one key accused. The operation marks a first-of-its-kind data-driven investigation, leveraging big data analytics and banking chain analysis to trace illicit fund flows across India and abroad.
How the Fraud Was Orchestrated
The investigation revealed a network of individuals operating four fictitious firms, created solely to illegitimately claim GST refunds under the guise of genuine business activity. These entities shared common PANs, mobile numbers, and email addresses, indicating a coordinated scam.
International Money Trail and Enforcement Action
Funds were traced to entities in Delhi, other Indian states, and international jurisdictions including Hong Kong and Singapore.
- 45 bank accounts linked to 27 entities have been frozen
- PANs flagged and blocked in coordination with the Income Tax Department
- A detailed report has been submitted to the Department of Revenue, Government of India
Swift Recovery and Arrest
The department has so far recovered ₹1.16 crore, with proceedings underway to retrieve the remaining amount.
- An FIR has been lodged with the Economic Offences Wing (EOW) of Delhi Police
- Bunty, son of Harish Chander and proprietor of one of the fraudulent firms, has been arrested and remanded to police custody
Zero-Tolerance Policy on GST Fraud
A senior official stated:
“This decisive action reaffirms our zero-tolerance approach to GST fraud. Such offences drain public resources and burden honest taxpayers.”
The department emphasized its commitment to protecting the integrity of the GST regime through advanced analytics and inter-agency coordination.
