New Delhi — August 7, 2025 — In a significant escalation of financial crime enforcement, the Enforcement Directorate (ED) has carried out widespread raids across Jharkhand, West Bengal, and Maharashtra, targeting entities allegedly involved in a ₹750 crore fake GST invoice scam.
Scope of the Crackdown
The Enforcement Directorate dispatched teams to multiple locations—including Ranchi and Jamshedpur (Jharkhand), Kolkata (West Bengal), and several unidentified sites in Maharashtra. The raids were prompted by initial findings of a network generating bogus invoices to claim fraudulent Input Tax Credit (ITC), purportedly totalling ₹750 crore.
While ED action in Jharkhand and West Bengal had earlier exposed GST frauds involving ₹800 crore—with fake invoices worth ₹14,325 crore—this recent operation marks an extension of the probe into Maharashtra as well.The Times of India+1Punjab News Expressbenefitnews.in
Tonal Echoes with Prior Cases
Sources suggest the mechanism mirrors prior scams where shell companies issued fake invoices to claim ITC. The individuals under scrutiny are believed to have operated across jurisdictions to evade detection. Investigations aim to trace the proceeds, identify financiers, and recover assets under anti-money laundering laws.
Notably, the ED had already filed a prosecution complaint in Ranchi against four key individuals linked to a similar ₹734 crore fraud, involving fake ITC schemes executed via 135 shell companies. Among assets seized were properties valued at ₹5.29 crore, cash of ₹8.98 crore, and ₹62.9 lakh in frozen bank balances.The Times of India+1ABP LiveThe Financial ExpressDeshsewak
Geographical and Legal Coverage
| State / City | ED Activity | Notable Figures / Amounts |
|---|---|---|
| Jharkhand (Ranchi, Jamshedpur) | Primary focus of search operations | Previously connected to ₹800 Cr scam, ₹734 Cr filing |
| West Bengal (Kolkata) | Simultaneous raids with Jharkhand | Part of the same network involving ₹14,325 Cr in fake invoices |
| Maharashtra (locations undisclosed) | Newly included in operations | Links being probed to ₹750 Cr fraud |
Legal and Industry Impact
The expansion of raids into Maharashtra signals ED’s intent to dismantle the entire GST fraud network across multiple states. Property seizures, asset freezes, and indictments are expected as investigations deepen. Legal experts observe these operations send a strong message to financial intermediaries seeking to exploit GST systems.
