GST Fraud – Five Arrested in Delhi Over Alleged Rs 5.5 Crore Refund Scam
GST Fraud –Three officials from the Delhi government’s Department of Trade and Taxes, along with two private individuals, have been arrested in connection with an alleged Goods and Services Tax (GST) refund scam that reportedly caused a loss of nearly Rs 5.5 crore to the public exchequer. The Anti-Corruption Branch (ACB) announced the arrests on Tuesday after an investigation into suspicious refund approvals uncovered multiple procedural violations and the alleged use of forged records.
Complaint Triggered Anti-Corruption Investigation
According to the ACB, the investigation began after the Department of Trade and Taxes lodged a formal complaint highlighting suspected irregularities in the processing of GST refund applications. Officials reviewing the transactions raised concerns that several refund claims had been cleared without following the prescribed verification process, prompting the anti-corruption agency to examine the matter in detail.
The accused have been identified as GST Officer Ajit Singh, GST Inspector Atal Bhardwaj, Lower Division Clerk Himanshu Malik, and two private individuals, Ajay Kumar and Ashish Mishra. Investigators believe the group played different roles in facilitating the alleged fraudulent refund claims.
Alleged Bypass of Mandatory Verification
The probe revealed that several mandatory checks required before approving GST refunds were allegedly ignored. Investigators claim that applications were processed without proper financial scrutiny, despite rules requiring detailed verification before government funds are released.
The ACB further alleged that fabricated documents and manipulated records were submitted in support of the refund applications. Fake photographs were also reportedly used as part of the documentation to make the claims appear genuine. Authorities believe these alleged irregularities enabled the refund applications to be cleared far more quickly than the standard processing timeline.
Government Exchequer Suffered Significant Loss
Investigators estimate that the alleged fraud resulted in an unlawful payout of approximately Rs 5.5 crore from government funds. Officials said the refunds were sanctioned even though the supporting documents should have undergone detailed examination before approval.
According to the findings shared by the ACB, the GST officer is accused of authorising the refund claims without carrying out the mandatory scrutiny required under departmental procedures. The agency is examining whether established safeguards were deliberately overlooked during the approval process and whether additional individuals may have been involved.
Investigation Continues Into Wider Network
The Anti-Corruption Branch stated that investigators are continuing to analyse official records, digital evidence and financial documents linked to the case. Authorities are also examining the movement of funds and the communication between the accused to determine whether the alleged fraud was part of a larger network or an isolated incident.
Officials have indicated that further action will depend on evidence collected during the ongoing investigation. Additional questioning and forensic examination of documents are expected as investigators attempt to establish the complete sequence of events and identify any other beneficiaries of the alleged fraudulent refunds.
The case has once again drawn attention to the importance of strict compliance with verification procedures in the GST refund system. Authorities maintain that financial scrutiny and document authentication are essential safeguards to protect public revenue and ensure that government funds are released only to eligible applicants. The investigation remains underway, and further developments are expected as the Anti-Corruption Branch continues its inquiry.