₹800 Crore GST Scam Unfolds in Jamshedpur: ED Tightens Noose Around Businessmen

A sweeping GST fraud scandal amounting to over ₹800 crore has rocked Jamshedpur, with the Enforcement Directorate (ED) cracking down on a network of businessmen accused of operating fake shell companies. Four arrests have already been made, including prominent names from Jharkhand and Kolkata, exposing a far deeper network of tax evasion and economic deception than initially suspected.

A Widening Web: ₹800 Crore Fraud Just the Tip of the Iceberg

The Enforcement Directorate has taken Kolkata-based businessman Amit Gupta into custody for three days in connection with the ₹800 crore GST scam. The remand was granted by a special court, allowing ED to interrogate Gupta regarding his alleged role in orchestrating fake GST entries through shell firms. According to the ED, Gupta and others generated fraudulent invoices and claimed illegitimate Input Tax Credit (ITC), resulting in massive losses to the state exchequer.

Gupta is not alone. So far, the ED has arrested four individuals: Shiv Kumar Devda, Vikky Bhalotia from Jugsalai (Jamshedpur), Amit Gupta, and Mohit Devda. All are currently held at the Birsa Munda Central Jail in Ranchi, with further court proceedings expected once Gupta’s remand period ends on June 5.

The Modus Operandi: Fake Companies, Fake Bills, Real Damage

The accused reportedly floated over 90 shell companies and created fake GST invoices worth ₹14,325 crore to fraudulently claim Input Tax Credits. While the direct loss from fake transactions is pegged at ₹800 crore, investigators fear the real figure may be significantly higher. According to officials, the scam involved manipulating GST entries, forging purchase-sell documents, and bypassing tax obligations, a systemic fraud designed to appear legitimate on paper.

A key witness, GST intelligence officer Dinesh Singh, filed a detailed report on how Shiv Kumar Devda, Sumit Gupta, and Amit Gupta masterminded the racket. Their arrest followed after sustained investigation under money laundering and financial fraud statutes. Sumit and Amit Gupta are both residents of Jamshedpur and allegedly coordinated operations using a network of fictitious companies across multiple states.

This scam is one of the largest to have emerged under India’s GST regime and has raised serious questions about loopholes in the monitoring of returns and verification of ITC claims. The government has incurred massive revenue losses, and the ED has now filed an ECIR (Enforcement Case Information Report) based on evidence collected through raids, account tracing, and document seizures.

Sources reveal that more arrests are likely as the agency probes deeper into bank accounts, digital trails, and possible political links. If proven, this case could set a precedent for stringent reforms in GST compliance and enforcement.