Madhya Pradesh Economic Offences Wing detects ₹130 Cr GST ITC Scam
The large-scale scam, detected during an ongoing probe, involves 23 fake firms and four shell companies
The Economic Offences Wing (EOW) of Madhya Pradesh has unearthed a massive Goods and Services Tax (GST) input tax credit (ITC) fraud amounting to ₹130 crore. The large-scale scam, detected during an ongoing probe, involves 23 fake firms and four shell companies operating across multiple states.
Initially, the investigation was focused on fraudulent ITC claims worth ₹34 crore linked to nine functioning firms and four fictitious entities. However, as the inquiry progressed, the scale of the racket grew significantly. According to officials, the fraudulent network extended beyond Madhya Pradesh, spreading into Chhattisgarh and Maharashtra, and now totals ₹130 crore in bogus claims.
EOW Director General Upendra Jain described the network as an “organised GST scam syndicate.” He noted that the group operated through a fully digitised ecosystem, including coordinated online transactions, fabricated bank accounts, forged email IDs, manipulated mobile numbers, and fake ITC claims. The seamless use of technology allowed the syndicate to evade detection for years.
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At the centre of the scam is NK Khare, also known by the alias Vinod Kumar, who has been arrested by the authorities. Khare is believed to be the mastermind behind the elaborate fraud. He allegedly set up four companies using the names of unsuspecting villagers to deceive the government and exploit the GST system. Khare’s operation reportedly began in 2009 and grew into a sophisticated web of deception over the years.
Investigators have so far traced fake invoices worth ₹512 crore, which were issued without any actual movement of goods or genuine trade transactions. The invoices, officials confirmed, existed solely on paper to facilitate fraudulent tax credit claims and siphon off public funds.
The investigation is ongoing, and authorities are now working to identify additional beneficiaries, accomplices, and the financial trail left behind by the scam.
The EOW is also coordinating with GST departments and enforcement agencies in neighbouring states to ensure the entire network is exposed. Officials have assured that strict legal action will be pursued against all those involved, including those who knowingly aided the fraud.
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