RANCHI: The Enforcement Directorate (ED) is conducting searches at 12 locations across Jharkhand, West Bengal, and Maharashtra in connection with an ongoing investigation under the Prevention of Money Laundering Act, 2002.
The case pertains to a large-scale fake Input Tax Credit (ITC) fraud involving shell entities and unauthorised financial channels.
According to sources, ED teams are conducting searches at six locations simultaneously, including a flat located on the fourth floor of Krishna Apartment in the PP compound. Necessary documents, digital records and possible evidence are being searched at all these places, they said. The investigation stems from the arrest of Shiva Kumar Deora, identified as the key mastermind behind the syndicate, who was charge-sheeted last month following his arrest in May 2025.
The case pertains to generation of Rs 750 crore "fake" Input Tax Credit (ITC) involving shell entities and unauthorised financial channels in Jharkhand. The current searches are being undertaken based on "credible evidence" that indicates involvement of several individuals and firms in laundering "proceeds of crime.
Earlier, during the first round of raids in the GST scam, ED had arrested four people, including Shiv Kumar Deora from Kolkata and Amit Agarwal alias Vicky Bhalotia from Jamshedpur. During the interrogation, it was found that by making fake bills, paper trade was shown without purchase and sale of goods and Input Tax Credit (ITC) was misused.
After getting information about the involvement of more people in this scam, second round of crackdown was launched by the ED. On June 25, 2024, Jamshedpur scrap businessman Bablu Jaiswal, alias Gyanchand Jaiswal, was also arrested on charges of GST scam.
The GST department called Bablu to the Intelligence office in Sakchi on the evening of June 24 and interrogated him and then sent him to jail after his arrest.