Delhi ACB Arrests Five in Rs 5.5 Crore GST Refund Fraud:

The Anti-Corruption Branch (ACB) of the Delhi Government has arrested five people, including three officials from the Department of Trade and Taxes and two private individuals, in connection with an alleged GST refund fraud worth around Rs 5.50 crore. In a first-of-its-kind action by the agency, property linked to one of the accused has also been attached.

The case was registered following a complaint from the Department of Trade and Taxes, GNCT of Delhi. According to the investigation, GST refunds were approved by ignoring mandatory rules and departmental procedures. Officials allegedly skipped required financial checks and verification, accepted fake documents and photographs, and processed refund claims in an unusually short time, causing a loss of about Rs 5.50 crore to the government.

Investigators said the then GST officer approved refund claims without carrying out the required scrutiny. The officer allegedly relied on fake verification reports uploaded by a tax verification official, who reportedly did not physically inspect the business premises before submitting the reports. Financial investigations also revealed that the fraud money was routed through several bank accounts and shell entities to hide its source.

The probe further found that a part of the alleged fraud proceeds was transferred to the family members of one of the accused government officials, who later used the money to buy a house in Rohini. The property, valued at around Rs 2 crore, has been attached by the ACB after obtaining permission from the court. Investigators also arrested two private individuals for allegedly helping in the transfer and layering of the money as part of the larger conspiracy.

The five accused are Ajit Singh, GST Officer; Atal Bhardwaj, GST Inspector; Himanshu Malik, Lower Division Clerk (LDC); Ajay Kumar, a private individual; and Aashish Mishra, a private individual.

The investigation is still underway. The ACB said it is working to identify other people involved in the case, trace the remaining proceeds of the crime, examine digital and financial evidence, and take further action against everyone found responsible.