The Central Goods and Services Tax (CGST) Delhi East Commissionerate recently launched a major crackdown on tax evasion with “Operation Clean Sweep.” This meticulously coordinated operation revealed a complex network of 48 interconnected fraudulent entities, which collectively claimed illegitimate Input Tax Credits (ITC) exceeding ₹199 crores.
“Operation Clean Sweep,” spearheaded by the CGST Delhi East, was a product of extensive human intelligence gathering, bolstered by advanced data mining and analysis techniques. This synergy of human and technological resources was pivotal in uncovering the elaborate scheme.
During the initial phase of this operation, the team zeroed in on 48 fake firms. These entities, which existed only on paper or not at all, were involved in generating bogus invoices without actual delivery of goods or services—a clear violation of GST laws. The investigation led to the arrest of three individuals, including the proprietor of M/s M.K. Traders. This individual alone was responsible for fraudulently claiming over ₹5 crores in ITC, a significant portion of which was distributed within the network. The other two arrestees played crucial roles in the syndicate’s operations. The authorities also seized various incriminating items, such as company stamps, SIM cards, and identity documents.
The operation’s success was partly due to the challenging on-ground conditions, including narrow and sensitive areas in Delhi. The Delhi Police played a crucial role, providing substantial support and manpower to assist the GST officers in navigating these challenges.
The investigation is ongoing, with further efforts to unravel the complete scope of this fraudulent network and bring all involved parties to justice. This operation underscores the commitment of the CGST Delhi East Commissionerate to uproot tax evasion and reinforce the integrity of the GST system.
