🧾 ₹33 Crore GST Scam Busted by Madhya Pradesh EOW: Mastermind Arrested in Ranchi

In a major breakthrough, the Madhya Pradesh Economic Offences Wing (EOW) has busted a multi-state GST scam involving fraudulent Input Tax Credit (ITC) claims exceeding ₹33 crore. The fraud, carried out using a nexus of bogus firms, forged documents, and shell companies, was allegedly orchestrated by Vinod Kumar Sahay, alias N.K. Khare, who was arrested on June 25 from Ranchi, Jharkhand.

Sahay, the alleged kingpin, has been remanded to police custody till July 2, following his production before a special court in Jabalpur.

📌 Modus Operandi: Web of Bogus Firms

According to the EOW:

The accused created multiple fake companies using forged Aadhaar cards, PANs, and utility documents belonging to unsuspecting individuals.
Sahay misled victims in Jabalpur by offering help to secure business loans and collected their personal documents.
These were used to set up shell entities, including:
- M/s Maa Narmada Traders (Pratap Singh Lodhi),
- M/s Namami Traders (Deendayal Lodhi),
- M/s Maa Reva Traders (Ravikant Singh),
- M/s Abhijeet Traders (Nilesh Kumar Patel).

Sahay controlled every aspect of these entities—bank accounts, login credentials, mobile numbers, and emails—issuing fake GST invoices without any real supply of goods or services, thereby facilitating illegal ITC transfers.

🕸️ Multi-State Reach and Beneficiaries

The scam extended beyond Jabalpur with fraudulent transactions traced to Madhya Pradesh, Chhattisgarh, and Maharashtra. Major firms under investigation include:

K D Sales Corporation (Indore) – Fake billing of ₹64.38 crore, with ₹17.70 crore in ITC passed on.
Mehak Enterprises (Bhopal) – Involved in ₹1.20 crore of fake ITC claims.
Other firms named: Jagdamba Coal Carriers, Mahamaya Traders, Ankita Steel & Coal, Amber Coal Depot, Dilip Traders, Anam Traders, and Koraj Technics.

These companies were used as fictitious buyers or sellers in circular billing chains to evade taxes.

🏢 Suspicious Corporate Connections

Sahay is listed as a director in several companies now under scrutiny:

Citron Minerals Pvt. Ltd.
Garrison Coal Pvt. Ltd.
Arya Coal Trading Pvt. Ltd.
VK Minerals Pvt. Ltd.
JMSD Allops Pvt. Ltd.

These firms are suspected of being fronts for similar financial irregularities and may have facilitated further tax evasion in the mineral and coal trading sectors.

🔍 Ongoing Probe and National Coordination

Aided by technical surveillance and a detailed banking trail analysis, the EOW tracked Sahay to Ranchi, where he had resumed operations in the coal sector under a new identity. He was arrested in a covert operation and brought back to Jabalpur.

The EOW has confirmed that more arrests and disclosures are likely, as the scam’s digital and financial footprint is being probed across states. The agency is coordinating with tax departments, financial intelligence units, and regulatory bodies to uncover the entire network and extent of the GST fraud.

⚖️ Significance

This case marks one of the most sophisticated GST frauds uncovered in central India in recent years, reflecting the growing misuse of digital platforms and tax systems by organized financial crime networks. It also highlights the need for stricter KYC enforcement, real-time GST invoice tracking, and inter-state enforcement collaboration.

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