156 Crore GST Scam Busted in Nagpur: 5 Arrested for Creating Fake Firms & Bogus Invoices
The Unfolding of the Scam: The fraud came to light when Biswajeet Roy, a West Bengal resident, filed a complaint at the Lakadganj police station in May 2025, alleging that his PAN and Aadhaar details had been misused to set up a firm—Kshitij Enterprises—in his name. Initially lured to Nagpur in June 2024 under the pretext of employment and small-business support, Roy discovered that the accused had covertly executed fraudulent transactions worth nearly ₹96.39 crore through his shell company between September and December 2024. A similar complaint by Mithun Rajpande revealed another ₹59.51 crore siphoned off via a second bogus entity, Avadh Enterprises, established under his identity.
Modus Operandi: Investigators found that the syndicate created approximately 60–70 fake firms using forged documents of laborers and economically vulnerable individuals—many unaware of their names being exploited. These shell companies issued fictitious invoices to over 170 legitimate businesses, enabling the culprits to claim fraudulent GST refunds and launder proceeds through hawala networks and online gaming platforms. Funds routed into bank accounts were withdrawn in cash, with a portion remitted back to colluding buyers to perpetuate the illicit cycle.
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Victims’ Accounts: Roy, a school dropout who suffered financial hardship following his father’s demise, recounted that the accused initially paid him ₹25,000 and provided accommodation in a godown to cement his trust. Unbeknownst to him, they had him sign numerous documents, including agreements to furnish “monthly returns,” which masked the large-scale invoice fraud orchestrated behind his back. Rajpande faced an identical ploy, believing he was partnering in a genuine trading venture only to find his identity weaponized for fake bill generation.
Investigation and Arrests: A swift, overnight crackdown by nine Crime Branch teams led to 11 simultaneous raids across Nagpur, resulting in the arrest of five principal figures: Bunty (Santosh) Rampal Sahu, Jayesh Rampal Sahu, Anand Vinod Harde, Rishi Hitesh Lakhani, and Brijkishor Ramniwas ManiharThey were produced before a Nagpur court on May 18, 2025, and remanded to police custody until May 22. Senior Inspector Kamlakar Gaddime led the operation under DCP Crime Rahul Maknikar and CP Ravinder Singal, highlighting law enforcement’s zero-tolerance stance on economic offences.
Evidence Seized and Ongoing Probe: Authorities confiscated more than ₹24 lakh in cash and material assets valued over ₹41 lakh, including laptops, pen drives, and financial records. Digital forensics teams are extracting data to map the full extent of the crime, while transport departments are being called upon to verify the authenticity of vehicle movement bills tied to the shell firms. Police have identified the use of SIM cards obtained through counterfeit documents, implicating the accused in further online gaming and hawala syndicates. With over 175 companies now flagged for suspicious transactions, the probe is intensifying to trace the entire money trail.
Profiles of the Accused
- Bunty (Santosh) Rampal Sahu (52): Alleged mastermind with a history of petty crimes and prior arrests across Maharashtra.
- Jayesh Rampal Sahu (36): Bunty’s brother and key collaborator in document fabrication.
- Brijkishor Ramniwas Manihar (59): Self-styled “GST tax consultant,” responsible for orchestrating invoice schemes and liaising with hawala networks
- Rishi Hitesh Lakhani (21) and Anand Vinod Harde (33): Operatives handling bank transactions and cash withdrawals.
Accomplices Avinash Sahu, Rajesh Sahu, and Anshul Mishra remain at large, with multiple arrest warrants pending.
Impact on the Tax System and Next Steps:This case underscores vulnerabilities in GST compliance mechanisms, particularly the verification of new registrants and the monitoring of refund claims. In response, the GST Department is expected to tighten risk-based compliance checks and integrate real-time data analytics to detect anomalies in invoice patterns Financial intelligence units are collaborating with state authorities to clamp down on hawala channels exploited by fraudsters.
Conclusion: The Nagpur ₹156 crore GST fraud exemplifies the sophistication of white-collar crime networks that exploit regulatory loopholes and the identities of the disadvantaged. Prompt action by the Crime Branch has yielded significant arrests and evidence, yet the evolving nature of such schemes demands continual vigilance from tax authorities, banks, transporters, and businesses alike. As investigations proceed, lessons learned here will inform broader reforms aimed at fortifying India’s GST architecture against similar future threats.