India's ₹524 Cr GST Scam Uncovered: 240 Fake Firms Across 22 States

A racket so shocking that even seasoned investigators were stunned has just come to light in Jodhpur, Rajasthan. What started as a seemingly simple case of fake Aadhaar and PAN cards being issued from an E-Mitra center has now unraveled into a multi-crore GST scam spanning across 22 Indian states.

Arrests in Masuria Spark Nationwide Probe

It all began in Shramikpura, Masuria, under the jurisdiction of Devnagar Police Station. During a routine interrogation of two suspects, authorities stumbled upon something massive. The accused—Praveen Panwar, who operated an E-Mitra center and is a resident of Masuria UIT Colony, and Saddam Hussain, from Narayan Nagar in Shobhavton ki Dhani—were initially arrested for allegedly generating fake Aadhaar and PAN cards. But as Deputy Commissioner of Police (West), Rajarshi Raj Verma revealed, this was just the tip of the iceberg.

DST and Cyber Cell Uncover Major Fraud Network

Upon deeper investigation by the DST and Cyber Cell teams, led by Police Station Officer Somkaran, it became clear that a large and organized gang was operating behind the scenes. Acting swiftly, authorities arrested several more individuals including Kishan Singh, Ranveer Singh, and Gajendra Singh—all residents of Bhatiyan Ki Dhani in Padsala, Osian—as well as Chailaram Meghwal from Sanwat Kuan Khurd in Bawdi Tehsil and Amit Bhati from near Kumharon Ki Bagechi in Masuria.

Some Sent to Jail, Others on Remand

While Praveen and Saddam have been sent to jail, the remaining accused are currently on remand. Kishan, Ranveer, and Gajendra were even taken to another state as the investigation deepened. Cyber Cell Head Constable Prem Chaudhary and DST Constable Dalaram have been instrumental in unearthing this sprawling network.

Suo Motu FIR and E-Mitra Blacklist Initiated

The matter gained such gravity that the Devnagar Police Station took suo motu cognizance and filed an FIR on June 20. In the process, the police uncovered that Praveen was not only making fake identity documents, but was also forging government seals and officer signatures. This enabled the gang to open fraudulent bank accounts, obtain SIM cards, and get GST registrations for non-existent companies—all through fake documents and email IDs.

Shell Companies Spread Across 22 States

To date, the gang has been linked to 240 fake firms created in 22 states, including Andhra Pradesh, Assam, Bihar, Delhi, Chhattisgarh, Daman and Diu, Goa, Gujarat, Himachal Pradesh, Karnataka, Madhya Pradesh, Maharashtra, Manipur, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttar Pradesh, Uttarakhand, and West Bengal. These shell firms existed only on paper but were used to issue fake invoices worth hundreds of crores.

Rs 524 Crore Worth of GST Scam

The scale of the scam is staggering. Fake bills worth Rs 524 crore were generated. Of this, GST claims worth Rs 278 crore were successfully made. An additional Rs 246 crore was passed as GST input credit. Altogether, Rs 524 crore of public money was manipulated through fraudulent means. So far, 44 of the 240 fake firms have been traced using email IDs, PAN numbers, and mobile data. The remaining 196 are being identified through other databases.

GST Department Takes Action

The GST Department has already swung into action. Out of the 240 fake companies, 152 have had their GST registrations cancelled across different states. In Rajasthan alone, 29 such companies were found, of which 16 are already deregistered. In Jodhpur city itself, 18 such firms were discovered, and registrations of 9 have been annulled. On June 19, the Central GST’s Tax Anti-Aviation Branch physically inspected 8 firm addresses in Jodhpur, only to find no trace of business activity.

Mastermind Still at Large, CAs Under Scrutiny

And it doesn’t end there. According to police sources, the mastermind of the operation is still at large. The role of two Chartered Accountants—one from Mumbai and the other from Kolkata—has also emerged during interrogation. Their involvement in registering fake companies is now under scrutiny. Additionally, accused Amit Bhati ran a pawn shop near Geeta Bhawan where fake government seals were reportedly manufactured. The other arrested members had previously taken people to Mumbai to create and distribute fake Aadhaar cards.

Multiple Police Stations Involved in the Crackdown

Present at the time of FIR registration and early investigation were officials like Boranada police station in-charge Shakeel Ahmed, Bhagat ki Kothi police station in-charge Rajiv Bhadu, SI Pintu Kumar, Chamna Ram, ASI Hiraram, and Head Constable Sunil Bishnoi, along with Omaram.

One of India's Biggest Digital Frauds?

As this case unfolds, it’s becoming clearer that this wasn’t just a local scam—it’s a nationwide fraud that raises serious questions about digital verification, regulatory loopholes, and the misuse of technology. The scale, the method, and the brazenness of this operation are nothing short of jaw-dropping.

One thing is for sure: this is only the beginning. Authorities are leaving no stone unturned to catch the mastermind and all accomplices involved. With fake Aadhaar cards, fraudulent PANs, forged seals, dummy emails, bogus bank accounts, and shadow companies spread across India, this case could very well turn into one of the largest digital frauds India has ever witnessed.