NEW DELHI: Delhi Police has arrested six people for allegedly running a fake firms and bogus GST invoicing racket involving fraudulent transactions of around Rs 128 crore, officials said.
The case was registered on March 24 after a complaint regarding the fraudulent creation and operation of a fake proprietorship firm, M/s R.K. Enterprises. The firm was allegedly set up using the identity and financial documents of an unsuspecting individual, who was falsely promised employment in the GST department.
During investigation, it was found that the victim’s Aadhaar card, PAN card, electricity bill, and biometric details were misused to create the firm in September 2025 without his knowledge or consent. Police said the accused used the entity to conduct large-scale financial fraud, with transactions exceeding Rs 128 crore routed through it.
The probe further revealed that wrongful Input Tax Credit (ITC) worth around Rs 10 crore was fraudulently claimed and passed on using fake invoices. According to Additional Commissioner of Police (Economic Offences Wing) Ravi Kumar Singh, technical surveillance and analysis of GST records, banking transactions, email IDs, and digital evidence led to the identification of the accused.
Police said Dilip Kumar and Raj Kumar Dixit were the main conspirators behind the creation of fake firms, bogus GST invoicing, and filing of fraudulent GST returns. Other accused, Amar Kumar and Vibhash Kumar Mitra, were found to have facilitated the operation of multiple fake entities.
Further probe revealed that Nitin Verma, Mohammad Waseem, and Abid assisted in the racket by providing bank accounts and internet banking credentials, which were used to route illegal transactions and conceal proceeds of crime.
The syndicate allegedly created shell companies using forged documents and fake GST registrations to project them as genuine business entities. These firms were then used for issuing bogus invoices without actual supply of goods or services, generating accommodation entries, routing funds through banking channels, and fraudulently availing ITC.
Police said accused Dixit, a resident of Daryaganj, is the alleged mastermind of the syndicate. Despite being educated only up to Class IX, he reportedly operated a large-scale GST fraud network from his office in Daryaganj along with his associates and family members.
He is believed to have created and operated nearly 250 shell companies using fake and forged documents for bogus billing and fraudulent tax claims. Investigators also found that he engaged accountants, intermediaries, and multiple mobile numbers and bank accounts to hide the money trail and avoid detection. All six accused were arrested from different locations in Delhi and NCR after coordinated raids.