Delhi GST fraud exposed: Rogue officer and lawyers mastermind ₹54 crore scam

A major fraud operation within the Goods and Services Tax (GST) Department in Delhi has been exposed by the Anti-Corruption Bureau (ACB) of the Delhi Government, revealing a scam that siphoned off ₹54 crore in GST refunds. The scheme, orchestrated by a rogue tax officer and a trio of lawyers, involved 500 fake companies and fraudulent invoices totaling ₹718 crore.

Also Read: Budget 2024: What experts think it has done for startups, upskilling youngsters

The key figure in the plot, GST Officer Babita Sharma, collaborated with three lawyers, two transporters, and a fake company owner to create a network of 500 non-existent firms, purportedly engaged in the import and export of medical goods. These firms existed only on paper and were used to claim fraudulent GST refunds.

Between 2021 and 2022, Sharma, using 96 of these fake firms, approved over 400 refunds totaling ₹35.51 crore. The first year saw only ₹7 lakh in refunds, but the approvals surged dramatically in the following year. Notably, these refunds were processed and approved within just three days of application.

The scam began to unravel when Sharma was transferred to Ward 22 of the GST office in 2021. Shortly after, over 50 companies applied for migration from Ward 6 to Ward 22, raising suspicions. An investigation by the GST Vigilance Department led to the discovery of the fraudulent activities, revealing deep-rooted corruption within the department itself.