The Economic Offences Wing (EOW) of Delhi Police has launched an investigation into an alleged ₹374-crore GST fraud involving the misuse of stolen identities. The probe follows the registration of seven FIRs in November and December 2025.
PAN and Aadhaar Misused for Fake GST Registrations
Fraudsters allegedly used PAN, Aadhaar, and other personal documents of unsuspecting individuals to obtain GST registrations and conduct large-value transactions without their knowledge. The transactions were reportedly carried out entirely on paper, with no real business activity involved.
Key Cases Under Investigation
In one FIR registered on December 11, 2025, a businessman from Inderpuri in west Delhi alleged that his PAN was used without consent to obtain a GST registration. Transactions worth ₹194.7 crore were allegedly conducted in his name. The fraud came to light after his chartered accountant noticed discrepancies while filing income tax returns.
In another case registered in November 2025, a couple told police that a dummy company had been fraudulently created in their names, with transactions amounting to ₹69.9 crore conducted without their knowledge.
A separate complaint filed on December 24, 2025 involved alleged fraudulent transactions worth nearly ₹48 crore. The complainant, a former data-entry operator, said his PAN and Aadhaar details were collected under the pretext of opening a salary account. These credentials were later misused to register a company without his consent.
He became aware of the issue only after receiving a notice from the Income tax department in Karnataka, followed by notices from authorities in Gurgaon and Siwan, seeking explanations for high-value transactions carried out in his name.
Four additional cases involved alleged transactions worth ₹9.4 crore, ₹20 crore, ₹26.9 crore, and ₹5.3 crore.
Organised Gang Suspected
Delhi Police EOW’s Investigators are examining whether an organised fraud network is behind the cases. As per news reports, the scammers typically open bank accounts using manipulated or fake credentials that are not linked to victims’ existing accounts, reducing the risk of detection.
These accounts are then used to float dummy firms, which show fake purchases and sales to generate fraudulent GST transactions. While the amounts appear substantial, the transactions largely exist only on paper.
Vulnerable Groups Targeted
The fraudsters often target employees, small business owners, and job seekers, gaining access to personal documents under the guise of employment offers, financial assistance, or GST-related work.
Advisory for the Public
Authorities have urged individuals to regularly verify the PAN-GSTIN linkage on the official GST portal and immediately report any unauthorised registrations. People have also been advised to exercise caution while sharing personal information and to securely dispose of sensitive documents to prevent misuse.
Source: Economic Times