In a significant operation, the Directorate General of GST Intelligence (DGGI) Ludhiana has arrested a notorious uncle-nephew duo, Raj Kumar and Prince Kumar, involved in a massive fake invoicing scheme that led to substantial tax evasion. The duo, who managed and operated 26 different firms, is responsible for fraudulent invoicing worth a staggering ₹282.96 crores. The fake invoicing was used to illicitly pass on ineligible Input Tax Credit (ITC) totaling ₹42.98 crores.

The firms under the duo’s control were primarily involved in trading Iron & Steel Scrap, TMT Bars, and Cardboard Scrap, among other goods. A detailed investigation revealed that these entities were part of a well-coordinated scheme to claim and pass on fraudulent ITC without any underlying legitimate supply of goods, in direct violation of the provisions of the Central Goods and Services Tax (CGST) Act, 2017.

During a search operation conducted at the official premises of Raj Kumar and Prince Kumar, law enforcement officials seized a large cache of incriminating evidence, including computers, mobile phones, invoices, cheque books, and diaries. These materials provided critical proof of the duo's involvement in the fraudulent activities.

Confronted with this overwhelming evidence, the duo admitted to their involvement in the scheme, confessing that they had availed and utilized fraudulent ITC to the tune of ₹42.98 crores. As a result, both Raj Kumar and Prince Kumar were arrested on March 5, 2025, and remanded to judicial custody for a period of 14 days.

The investigation, however, is far from over. DGGI Ludhiana is actively identifying and targeting other fraudulent entities involved in similar bogus billing operations. This crackdown is part of an ongoing effort by DGGI Ludhiana to tackle the growing menace of fake invoicing and GST-related fraud and evasion across various sectors. To date, 13 individuals have been arrested in connection with several other fraud schemes uncovered by the office.

In addition, the firms that received these fraudulent invoices are now under intense scrutiny, with further investigations underway. DGGI Ludhiana has made it clear that any fraudulent activities related to GST evasion can be reported by the public to their office via email (DGGSTI.LDZU@GOV.IN), phone (0161-2453892), or by visiting their official address at 51-D, Sarabha Nagar, Ludhiana – 141001.

Dggi Directorate General Of Gst Intelligence Tax Fraud Scam Itc Bogus Billing Arrested Fake Invoicing