The Economic Offences Wing (EOW) of the Delhi Police has busted a major fake GST invoicing racket involving fraudulent transactions worth nearly Rs 128 crore, and arrested six accused allegedly linked to the syndicate, officials said on Saturday.
According to EOW, the accused were operating a network of shell companies and fake firms that generated bogus GST invoices and facilitated wrongful claims of Input Tax Credit (ITC), causing significant losses to the government exchequer.
The arrests were made in connection with a case registered on March 24 under various sections of the BNS at the EOW police station. The case pertains to the fraudulent creation of a proprietorship firm, M/s RK Enterprises, using forged documents and the identity credentials of an unsuspecting individual on the false promise of securing him employment in GST Department.
Investigators found that the victim’s Aadhaar card, PAN card, electricity bill, and biometric details were misused in September 2025 to create the firm without his consent or knowledge. Authorities later discovered that transactions exceeding Rs 128 crore had been carried out through the entity, while fraudulent ITC claims worth around Rs 10 crore were availed.
During the probe, EOW officials analysed GST records, banking transactions, email IDs, and digital evidence. The investigation allegedly identified Dilip Kumar and Raj Kumar Dixit as the key conspirators behind the creation of fake firms, bogus GST invoicing and filing of fraudulent GST returns.
Police said accused Amar Kumar and Vibhash Kumar Mitra facilitated the operation of fake entities, while Nitin Verma, Mohd Waseem and Abid allegedly provided bank accounts and internet banking credentials used for routing fake transactions and proceeds generated through bogus GST activities.
Multiple teams led by inspectors and supervised by senior EOW officers conducted raids across Delhi-NCR, following which Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohd. Waseem and Abid were apprehended from different locations on May 15.
According to investigators, the syndicate created shell firms using forged credentials and fabricated financial documents to portray them as legitimate businesses. These entities were allegedly used for generating fake GST invoices without actual supply of goods or services, routing funds through banking channels in exchange for cash transactions, filing bogus GST returns and fraudulently availing and passing on ITC benefits.
Police said around 50 shell entities have so far been identified in the investigation, though the accused are suspected to have operated nearly 250 shell companies as part of the larger network.
Raj Kumar Dixit, 43, a resident of Daryaganj, has been described by investigators as the mastermind of the syndicate. Despite studying only up to Class 9, he allegedly ran an organised fake invoicing racket from his office in Daryaganj with the help of associates and family members.
Vibhash Kumar Mitra, 34, originally from Panna in Madhya Pradesh, and Amar Kumar, 35, from Mathura in Uttar Pradesh, allegedly facilitated registration and operation of shell firms after failing to qualify as Chartered Accountants, and entering GST filing and accounting work.
Nitin Verma, a resident of Shahdara, allegedly operated multiple fake firms involved in bogus billing, while Mohd Waseem and Abid are accused of facilitating bank accounts and financial routing for the syndicate.
During the raids, police seized Rs 51.12 lakh in cash, fake stamps and forged documents related to RK Enterprises, fake invoices in both physical and digital form, 15 mobile phones, multiple SIM cards, two laptops containing GST-related data, and two cars allegedly used by the accused.
Further investigation is underway to identify additional beneficiaries and entities linked to the fake GST network, officials said.
