Officials say 40 bogus firms running from single office to control ‘paper-only’ network; the DGGI, Mumbai Zonal Unit, conducted the raid on November 18, during which officers unearthed a large cache of materials used for fabricating transactions.
The arrested accused has admitted that he personally controlled the fake entities and issued invoices. REPRESENTATION PIC/ISTOCK
The Directorate General of GST Intelligence (DGGI) uncovered a Rs 166.37-crore fake Input Tax Credit (ITC) racket being operated through more than 40 bogus entities being run from one office in Ghatkopar West. Officials said that what appeared to be a regular commercial establishment on the outside was functioning as the nerve centre of a massive paper-only supply chain where goods “existed only on documents”, while tax credits worth crores were allegedly circulated among shell firms.
The DGGI, Mumbai Zonal Unit, conducted the raid on November 18, during which officers unearthed a large cache of materials used for fabricating transactions. These included entity stamps, bank passbooks, cheque books, debit cards, multiple mobile phones, numerous SIM cards, laptops, desktop computers, and several digital storage devices. Officials said these items were instrumental in creating multiple layers of fraudulent paperwork required to maintain the facade of legitimate trade.
Following the raid, officers arrested Rajendra Bansilal Maurya, 30, on Wednesday (November 19) under Section 69(1) (committing specific, serious tax offences) of the CGST Act. Investigators said Maurya allegedly created dozens of falsified GST registrations from the Ghatkopar office, generated bogus purchase and sale invoices, issued e-way bills and e-invoices, and rotated ineligible ITC across a network of shell companies, ensuring the financial trail appeared authentic on paper.
During interrogation, Maurya allegedly admitted that he personally controlled around 40 fake entities and issued invoices based solely on instructions received from clients over WhatsApp. He allegedly confessed that he did not verify whether any goods were actually being traded and accepted that “the goods moved only on paper.” Several of the GST registrations used in the racket were later cancelled after being found to be fraudulent.
Officials also revealed that Maurya relied heavily on dummy mobile numbers, altered contact details, and multiple SIM cards to receive OTPs, file GST returns and operate the bogus firms without detection. According to investigators, the racket was strategically structured into Level A, B, C and D entities — a layering technique designed to obscure the fraudulent ITC trail and make the movement of illegitimate credit difficult to trace.
As the probe progressed, the DGGI identified several beneficiary firms that had allegedly availed sizeable ineligible ITC generated through the bogus network. These included Auto-Kraft Moto Care Pvt Ltd (Rs 18.48 crore), Greentex International Pvt Ltd (Rs 16.5 crore), Royal Enterprises (Rs 7.62 crore), DS Diam (Rs 9.81 crore), Siddharth Enterprise (Rs 22 crore), and Mercy Enterprises (Rs 21.75 crore). With the fake ITC already quantified at Rs 166.37 crore, officials believe the figure is likely to increase significantly as more entities linked to Maurya come under scrutiny.
Investigators described the Ghatkopar office as a “central operations desk” where all registrations, filings and digital communications converged. “Every layer of the racket was controlled from that single office,” an officer familiar with the probe said, adding that the operation was designed to mimic the supply patterns of real businesses, despite involving no physical goods.
The DGGI is now examining digital devices seized from the premises to trace the wider network, including clients who may have knowingly availed fraudulent credit. Officials said more arrests are likely, as the investigation widens across multiple states.
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