Delhi Income Tax Expert Arrested for Creating Fake Firms to Claim Fraudulent ITC

Police have achieved an important success in a big GST fraud case in Jhansi. On April 9th, the police arrested a wanted accused from New Delhi and produced him in the court, from where he was sent to judicial custody. The arrested accused has been identified as 39-year-old Virendra Kumar. He hails from Rohini, Delhi, and is originally from Sirsa, Haryana, who is an IT expert. A case related to cheating, forgery, and financial irregularities was registered against him in Nawabad police station under various sections of the Bharatiya Nyaya Sanhita (BNS).

This whole matter started on August 10, 2025, when GST officer Anil Kumar Yadav filed a complaint. It was stated in the complaint that GST registration was obtained by creating a fake firm through fake documents, and then the Input Tax Credit (ITC) was wrongly availed by showing fake supplies, sales, and circular trading, causing huge loss to the government.

During the investigation, it came to light that fake transactions were shown in the names of firms like DK Enterprises, Grasim Industries, and KJ Enterprises without the supply of any genuine goods. Through these actions, transactions of Rs 5.38 crore were reported, and fake ITC exceeding Rs 1 crore was claimed.

Further inquiry revealed that in June 2025 alone, ITC (including CGST and SGST) of more than Rs 1.02 crore was claimed in the GSTR-3B return by showing purchases of Rs 5.53 crore from a firm named Shyam Ji Traders. According to ASP Ariba Noman, all these firms were registered through fake documents and mobile numbers. During the arrest of the accused, the police recovered two mobile phones, two laptops, and 39 SIM cards, which were being used in this entire fraud.

During interrogation, Virendra Kumar said that to get SIM cards, he used to buy SIM cards from drug addicts in the outskirts of Delhi by paying Rs 300 for them. He and his associates Ishu and Sarkar used these SIM cards to create fake companies. At present both these accused are absconding. This gang together had created 70 to 80 fake firms in different states and manipulated GST by showing fake supply chains.

Earlier, on April 8th, 2026, Kotwali police had also arrested Neeraj Ranjan, a resident of Samaypur Badli, Delhi, in a similar case. He had claimed an ITC of Rs 4.5 crore by showing a fake turnover of Rs 24 crore. ASP Noman said that three separate cases of GST fraud were registered in Nawabad, Kotwali, and Prem Nagar police stations. After the April 9th, 2026 arrest, the police claimed to have solved all three cases. At present, the search for the remaining accused is going on, and police teams are raiding different places.