Operation Clean Sweep: CGST Delhi East Dismantles Syndicate of 48 Sham Firms, Exposing ₹199 Crores in Illicit ITC Availment; arrests 3

Operation Clean Sweep-CGST Delhi East Dismantles Syndicate - Sham Firms-Exposing -ITC Availment-TAXSCAN

The Central Goods and Services Tax (CGST) Delhi East Commissionerate has successfully dismantled a complex network of 48 interconnected fraudulent firms that were illicitly claiming Input Tax Credit (ITC) totaling over ₹199 crores in a meticulously executed initiative named “Operation Clean Sweep.”

This enforcement action was initiated by CGST Delhi East in response to intelligence gathered through a combination of human sources, data mining, and data analysis, complemented by on-the-ground intelligence.

In the initial phase of the operation, authorities identified 48 sham entities, categorised as either non-existent or merely existing on paper, engaged in the creation of counterfeit invoices. These invoices were generated without any actual supply of goods or services, constituting a violation of GST Law.

3 individuals were apprehended and subsequently arrested, receiving a two-week judicial custody remand from the Chief Metropolitan Magistrate Court at Patiala House. While these arrests mark a significant breakthrough, ongoing investigations are focused on uncovering other members of the syndicate, as well as its masterminds.

Among those apprehended, the proprietor of M/s M.K. Traders was found to have availed fraudulent ITC exceeding ₹5 crores, a substantial portion of which was funnelled to other connected links within the syndicate. The remaining two arrested individuals were identified as accomplices, actively supporting and facilitating the operations of the illicit network.

During the operation, a cache of incriminating evidence was seized, including stamps associated with 55 different firms, multiple SIM cards, and various documents such as AADHAR cards and electricity bills linked to third parties.

Notably, the entire operation unfolded in challenging terrains characterised by narrow bylanes and sensitive areas of Delhi. The success of this endeavour was made possible by the collaborative efforts of the GST officers and the Delhi Police, which deployed adequate personnel to ensure the smooth execution of the operation.

As investigations continue, authorities remain committed to unveiling the full extent of the syndicate’s activities and bringing all involved parties to justice.

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