ED arrests two in GST fraud, seizes nearly ₹70 lakhs

It matters to citizens as it details a significant financial fraud involving shell companies and the enforcement actions taken against the perpetrators.

Who it concerns: The document concerns Gyaan Chand Jaiswal (also known as Babloo Jaiswal), Raaj Jaiswal, and their associated entities (M/s Maa Sharda Endeavours Pvt. Ltd, M/s Makers Casting Pvt. Ltd, M/s Kedarnath Trexim Pvt. Ltd, and M/s Jai Bhole Enterprises). It also involves the Directorate of Enforcement (ED), the Directorate General of GST Intelligence (DGGI), and the Hon’ble Special PMLA Court, Ranchi.

What the ED says it did

• Gyaan Chand Jaiswal and Raaj Jaiswal were arrested on 30.09.2026 under Section 19 of the Prevention of Money Laundering Act (PMLA), 2002.
• The arrests followed search and seizure operations under Section 17 of PMLA conducted on 30.09.2026 at four premises in Jamshedpur and Kolkata.
• The investigation revealed a syndicate created 135 shell companies to issue bogus invoices worth over ₹5000 Crore without actual supply of goods or services.
• The syndicate fraudulently generated and passed on fake ITC worth over ₹734 Crores, which was sold to beneficiary firms to evade GST liabilities.
• Fake ITC worth ₹54.33 Crores was routed through entities controlled by the accused and layered into their personal and relatives' bank accounts.
• The accused were produced before the Special PMLA Court, Ranchi on 01.10.2026 and remanded into Judicial Custody.
• ED has issued two Prevention of Attachment Orders (PAOs) for properties worth more than ₹20 Crore.
• A Prosecution Complaint has been filed before the Special PMLA Court, Ranchi, and is currently under trial.

Also in the document

• The investigation was initiated based on complaints from the Directorate General of GST Intelligence (DGGI), Jamshedpur.
• Earlier search and seizure actions in May and August 2025 resulted in the seizure of cash and freezing of bank balances totaling nearly ₹70 lakhs.
• Four other accused persons were arrested under PMLA on 08.05.2025, with three currently in judicial custody.
• The seized proceeds of crime were suspected to be used for business activities and the acquisition of movable and immovable properties.