The Delhi Police’s Financial Offences Wing (EOW) has busted an alleged GST fraud cartel working by means of shell firms and faux invoicing networks, arresting six people concerned in swindling ₹128 crore, an official stated on Saturday (Might 16, 2026).

The accused allegedly operated faux companies, producing bogus GST invoices, and availing wrongful Enter Tax Credit score (ITC) with none precise provide of products or companies, EOW in a press release stated.

On Might 15, EOW groups made a number of raids at completely different places in Delhi-NCR and arrested Raj Kumar Dixit, Amar Kumar, Vibhash Kumar Mitra, Nitin Verma, Mohammad Waseem, and Abid.

A case of GST fraud was registered towards a faux agency, M/s RK Enterprises, on the EOW Police Station on March 24 beneath numerous sections of the BNS.

The complainant alleged that his Aadhaar card, PAN card, electrical energy invoice and biometric particulars have been misused on the pretext of offering him employment within the GST Division, the assertion learn.

Through the investigation, the police discovered that the agency had been created in September 2025 with out the sufferer’s data and was subsequently used for transactions exceeding ₹128 crore.

“Wrongful ITC amounting to almost ₹10 crore was fraudulently availed by means of the faux entity,” learn the assertion.

The probe, involving technical surveillance, evaluation of GST information, banking transactions, e mail IDs and different digital proof, revealed that Dixit and Dilip Kumar, nonetheless at massive, have been the principle conspirators behind the racket.

The police stated Dixit operated a large-scale faux invoicing syndicate from Daryaganj together with his brothers and associates and orchestrated the creation of almost 250 shell firms utilizing cast and fraudulently obtained paperwork.

Investigators stated the accused used these companies for bogus billing, faux GST transactions, and fraudulent ITC claims whereas concealing the monetary path by means of a number of financial institution accounts, cell numbers and intermediaries.

Amar Kumar and Vibhash Kumar Mitra facilitated the formation of shell companies and bogus GST actions, they stated.

Nitin Verma allegedly created and operated a number of faux companies with the assistance of accountants, whereas Mohammad Waseem and Abid have been concerned in offering financial institution accounts and web banking credentials for routing faux transactions and proceeds generated by means of bogus GST actions.

The police stated round 50 shell firms and entities used for routing cash and faux GST entries have thus far been recognized.

Of their searches, police recovered ₹51.12 lakh in money, 15 cellphones, two laptops, a number of SIM playing cards, faux stamps, cast paperwork, enormous portions of faux invoices in bodily and digital kind, and two automobiles allegedly utilized by the accused.

The police assertion learn, “These companies have been allegedly used to generate bogus GST invoices, present lodging entries by means of banking channels, route funds in lieu of money transactions and file faux GST returns.”

The investigation continues to be underway to establish different beneficiaries and entities linked to the syndicate, the police stated.