INR 734 Crore GST Fraud: Jharkhand Businessman, Son Held Over Fake Invoices and Shell Company Network
Jharkhand: Jamshedpur businessman Gyanchand Jaiswal and his son Raj Jaiswal have been sent to judicial custody after their arrest by the Enforcement Directorate (ED) in connection with an alleged Rs 734-crore GST fraud case. The arrests followed searches at multiple locations linked to the family and their associates in Jharkhand and Kolkata.
Jharkhand: Jamshedpur businessman Gyanchand Jaiswal and his son Raj Jaiswal have been sent to judicial custody after their arrest by the Enforcement Directorate (ED) in connection with an alleged Rs 734-crore GST fraud case. The arrests followed searches at multiple locations linked to the family and their associates in Jharkhand and Kolkata. The ED arrested the father-son duo late Wednesday night after searches at premises in Jamshedpur, Adityapur-Gamharia, Deoghar and Kolkata. They were subsequently brought to Ranchi and produced before the court, which sent them to judicial custody.
Alleged Fake Invoices, ITC Fraud Under ED Probe
According to the ED, the case involves the alleged use of fake invoices to fraudulently claim input tax credit (ITC) without any actual purchase or sale of goods. The agency is also examining transactions involving shell companies and the flow of funds linked to the alleged fraud. During the searches, ED teams examined and seized business documents, GST records, banking and financial transaction details and electronic devices. Records were also collected from the premises of Jaiswal's chartered accountant, Sanjay Parekh. ED Raids Nine Places in Maharashtra in Rs 242 Crore Money Laundering Case.
The investigation has reportedly identified a network of shell companies allegedly used for generating fake invoices. Times of India reported, citing sources, that the agency is examining an alleged network involving 37 shell companies and fake invoices worth around Rs 5,000 crore.
DGGI Investigation Preceded ED Action
The case was initially investigated by the Directorate General of GST Intelligence (DGGI), Jamshedpur. According to the investigation, certain companies allegedly claimed ITC through invoices despite there being no corresponding supply of goods. Jaiswal had previously been arrested by the DGGI in June 2024 in a case registered under the GST Act and was subsequently remanded to judicial custody, according to details cited in the investigation.
The ED is now investigating the alleged money trail under the Prevention of Money Laundering Act (PMLA). The agency is examining the financial transactions and assets connected with the alleged GST fraud. ED Raids 26 Places in Delhi, Chandigarh, Haryana and Punjab in Money Laundering Case Linked to Tirupati Infraprojects Pvt Ltd.
Previous Arrests and Action in the Case
The broader investigation has also involved other businessmen from Jamshedpur and Kolkata. The ED had taken action against several accused in 2025 in connection with the alleged GST fraud network. According to a report by Jagran, the earlier investigation involved allegations of fake billing through numerous companies, with the ED having previously frozen bank funds and attached assets allegedly linked to proceeds of the suspected fraud.
The latest arrests are part of the ED's continuing investigation into the alleged GST fraud, the shell-company network and the associated money trail. The allegations remain subject to the ongoing investigation and judicial proceedings.
(The above story first appeared on LatestLY on Oct 02, 2026 07:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).
