Punjab: DGGI Ludhiana busts Rs 87.91 crore fake billing racket; two arrested

Chandigarh (Punjab)[India], May 15 (ANI): In an investigation by the Directorate General of GST Intelligence (DGGI), Ludhiana, three business entities, M/s Aar Dee Enterprises, M/s Aashi Steel Industries and M/s Abhi Alloys, all based in Mandi Gobindgarh, were found to have been involved in illegal sale of Rs 87.91 crores which had led to GST evasion of Rs 13.41 crores, said a release.
According to a release, these business entities were involved in the trading of iron and steel articles.
According to the release, this case has been unearthed due to the intra-organisational and inter-regional synergy between two offices, DGGI Lucknow in UP and DGGI Ludhiana in Punjab.
Two individuals, Raman Kumar Chaurasia and Devinder Singh of Mandi Gobindgarh and Khanna, respectively, in Punjab, used fake billing from Deepanshu Srivastava and one of his accomplices, Mohit Kumar, based in Lucknow, Uttar Pradesh, to procure the iron and steel articles fraudulently.
The Lucknow-based individuals, through 37 of their fraudulent business entities, had passed on fake Input Tax Credit to the Mandi Gobindgarh-based business entities.
On further investigation of the Punjab-based entities, it was learnt that they had taken fraudulent ITC through fake billing from 78 business entities involving an illegal sale of Rs 87.91 crore, which led to GST evasion of Rs 13.41 crore.
During DGGI Ludhiana's investigation, many pieces of incriminating evidence were found and seized. The voluntary statements made and admitted by the aforementioned individuals further corroborated this.
On 15 May 2025, DGGI Ludhiana arrested Raman Kumar Chaurasia and Devinder Singh for their acts, which led to GST evasion of Rs 13.41 crores. They have been sent to judicial custody.
DGGI Ludhiana has made multiple strides in its bid to weed out the menace of fake billing and fraudulent availment, utilisation, and passing on of Fake ITC.
Fake billing and fraudulent Input Tax Credit (ITC) claims pose a serious threat to the integrity of the indirect taxation system under the Goods and Services Tax (GST) regime. Such acts erode public trust in the tax system by creating an uneven playing field--honest taxpayers bear the burden while fraudsters benefit illicitly. This undermines voluntary tax compliance, a cornerstone of any effective taxation regime.
Moreover, fake billing significantly impacts government revenue, reducing public welfare, infrastructure, and social development funds. It distorts the economy, disrupts fair market competition, and can even lead to inflationary pressures when cascading effects trickle down the supply chain.
According to the release, detecting, preventing, and penalising fraudulent acts is essential to protecting the nation's social contract and economic health. Vigorous enforcement, digital monitoring, and public awareness are key to restoring trust and ensuring that the benefits of indirect taxation are realised fairly and sustainably across society.
DGGI is the Government of India's premier Intelligence and Investigating Agency for GST tax evasion, functioning under the Ministry of Finance. To tackle the menace of GST evasion, the DGGI develops intelligence, especially in new areas of tax evasion, through advanced tools for data analytics, besides using its intelligence network across the country to collect such information. (ANI)