Rs 128 Crore GST Fraud Case: EOW Busts Fake Companies Racket

A major GST fraud worth Rs 128 crore has been uncovered by the Economic Offences Wing (EOW) of Delhi Police, revealing a large network operating between Delhi and Bhopal. In the latest action, the EOW arrested two more accused, taking the total number of arrests in the case to eight. Investigators say the scam involved creating fake companies, generating fraudulent GST invoices, and illegally claiming tax refunds, causing huge losses to the government treasury. According to officials, the accused targeted unemployed individuals by promising them jobs and collecting their identity documents and financial details. These documents were then misused to establish fake firms registered under the GST system. The fake companies were later used to issue bogus GST bills and claim fake input tax credits and refunds. One of the key accused, Hemant Mulani alias Honey, a resident of Bhopal, was allegedly deeply involved in the technical side of the operation. A commerce graduate and former accountant, Hemant reportedly had strong knowledge of the GST refund system and exploited loopholes in the process. Police said he created several shell firms and sold their digital credentials to other members of the gang for large amounts of money. Another accused, Puneet, worked as a TV mechanic in Delhi’s Yamuna Vihar area. During service visits, he allegedly collected digital copies of people’s documents and passed them on to the fraud network in exchange for money. Investigators revealed that Puneet first gained the trust of victims before forwarding their details to Hemant Mulani and others involved in the scam. Under the supervision of ACP Virendra Kadyan, the EOW conducted multiple raids across Delhi-NCR before arresting Hemant on May 19 and Puneet on May 21. Officials say the investigation is still ongoing, and they are now examining the role of additional shell companies, beneficiaries, and a wider tax evasion syndicate linked to the fraud. The EOW believes more arrests could take place in the coming days as investigators continue to trace the money trail and uncover the full extent of the GST scam network.