DGGI busts over ₹500 crore bogus billing scam in Rajkot, two arrested

The Directorate General of GST Intelligence (DGGI) has unearthed a bogus billing racket worth ₹545 crore in Rajkot and arrested two persons for allegedly availing fraudulent input tax credit (ITC) of over ₹102 crore.

The accused, Jatin Sakaria and Vaibhav Boricha, were taken into custody for allegedly operating 23 fictitious firms to generate fake invoices without actual supply of goods.

According to DGGI officials, searches were conducted at multiple premises linked to the duo, during which several incriminating documents were recovered. Mobile phones and other electronic devices were also seized for further forensic examination.

Preliminary investigations revealed that the accused created bogus invoices amounting to approximately ₹545 crore and passed on illegal input tax credit of ₹102.25 crore to various beneficiary firms. The fake entities were allegedly registered in the names of unidentified persons and used to obtain GST registration and file returns in coordination with companies receiving the fraudulent invoices.

Officials said Sakaria was primarily responsible for managing the network of shell firms and issuing fake tax invoices to facilitate the wrongful availment of ITC.

Boricha allegedly handled financial transactions and routed funds through various channels. After deducting commission, the remaining amounts were reportedly returned in cash. Investigators said angadiya firms were used to move funds in the course of the operation.

The two accused allegedly worked in tandem to generate bills without actual supply of goods and to pass on ineligible input tax credit to beneficiary entities.