Bhubaneswar, Nov 7: In a significant breakthrough, the Directorate General of GST Intelligence (DGGI), Bhubaneswar Zonal Unit, has arrested a Mumbai-based man in connection with an alleged Goods and Services Tax (GST) fraud exceeding ₹325 crore.

The arrest took place on November 5, during coordinated search operations across multiple locations in Mumbai.

The accused, Nilesh Yogesh Jagiwala, is believed to be the mastermind behind a vast network of over 105 shell companies used to fraudulently claim Input Tax Credit (ITC). According to initial investigations, the syndicate had created numerous fictitious firms using forged identity documents and dummy directors, operating almost entirely through virtual means to mimic legitimate business activity despite the absence of any real commercial operations.

The elaborate fraud scheme reportedly involved purchasing dormant companies with active GST registrations, filing remote DIR-12 forms to replace genuine directors with proxies, and controlling all GST portal access through SIM cards managed by operators. Investigators revealed that the group systematically generated fake invoices, executed staged financial transactions, and conducted cash reversals and commission payments to conceal the true beneficiaries.

Search operations conducted across Mumbai and Pune led to the recovery of a large volume of incriminating material, including fake company seals, numerous mobile phones and SIM cards linked to GST registrations, digital data, bank account details, transaction records, and electronic communications.

Earlier, on October 17, 2025, the DGGI had arrested a woman from Pune believed to be a key associate of Mr. Jagiwala. Preliminary findings suggest she played a crucial role as an operational coordinator within the same fraudulent network.

Both accused have been remanded to judicial custody as further investigation continues into the extensive fake invoice racket.