Archive · 21 Jan 2026
ED raids in ₹658 crore fake GST case
The Enforcement Directorate (ED) conducted raids in several states to investigate a big fake tax case worth ₹658 crore.
They found a fake company called Siddhi Vinayak Trade Merchants that created fake bills to claim tax refunds they weren't entitled to, causing a loss of ₹99 crore to the government.
The ED also discovered 58 other suspicious companies that might have been used to move money illegally.
Two men, Rakesh Sharma and Ashutosh Kumar Jha, are accused of making fake bills to get tax benefits without actually selling any goods or services.
This case is part of a larger problem where many fake companies have been involved in similar scams, totaling ₹41,664 crore in fake bills last year.
The ED conducted raids in West Bengal, Jharkhand, and Manipur to investigate a ₹658 crore fake GST input tax credit case originating in Arunachal Pradesh.
A fictitious firm, Siddhi Vinayak Trade Merchants, generated fake invoices worth ₹658 crore, causing a loss of ₹99 crore to the exchequer.
The ED found 58 shell entities across different states suspected of being used for money laundering.
Rakesh Sharma and Ashutosh Kumar Jha are accused of availing fraudulent input tax credit through fake invoices without actual supply of goods or services.
Nearly ₹41,664 crore in fake invoice cases were detected in the last financial year, with 25,009 shell firms involved in a ₹61,545 crore fraudulent ITC scam in FY25-26.
- Who
- Enforcement Directorate (ED), Rakesh Sharma, Ashutosh Kumar Jha
- What
- Raids on entities involved in a ₹658 crore fake GST input tax credit case
- When
- January 20, 2026
- Where
- West Bengal, Jharkhand, Manipur, Arunachal Pradesh
- Why
- To investigate and unravel laundered money in a fake GST input tax credit case
- Case Value
- ₹658 crore
- Loss to Exchequer
- ₹99 crore
- Shell Entities Found
- 58
- States Involved
- West Bengal, Jharkhand, Manipur, Arunachal Pradesh
- Main Accused
- Rakesh Sharma, Ashutosh Kumar Jha
- Fictitious Firm
- Siddhi Vinayak Trade Merchants
- Total Fake Invoice Cases (FY25)
- ₹41,664 crore
- Shell Firms in FY25-26
- 25,009
