ED Arrests Jharkhand Businessman, Son in Alleged Rs 734 Crore GST Fraud Case

The arrests were made late Wednesday night after the agency conducted searches at multiple locations in Jamshedpur, Adityapur, Gamharia and Kolkata. Following medical examinations, the two accused were brought to Ranchi and are expected to be produced before a court later on Thursday.

According to the ED, the case involves an alleged network that used fake invoices to claim input tax credit (ITC) without corresponding purchases or sales of goods.

The agency is also examining transactions involving suspected shell companies and tracing the flow of funds linked to the alleged fraud. During Wednesday’s searches, ED teams visited premises associated with Gyanchand Jaiswal, his auditor Sanjay Parekh and several other individuals.

Investigators examined business records, GST documents, banking and financial transaction details and electronic devices during the searches, officials said.

The action has been initiated under the Prevention of Money Laundering Act (PMLA), with the ED taking up the investigation following an earlier probe by the Directorate General of GST Intelligence (DGGI), Jamshedpur.

The investigation has allegedly uncovered the use of shell companies, paper transactions and fabricated invoices to facilitate the claimed misuse of ITC. The ED is now examining the wider network of companies and transactions connected to the case.

The Jharkhand High Court had noted in a 2024 order that Gyanchand Jaiswal was arrested in June that year in a case registered under the GST Act and was subsequently remanded to judicial custody.

The ED has also taken action against other businessmen from Jamshedpur and Kolkata in connection with the alleged GST fraud network during 2025.

The agency is questioning Gyanchand and Raj Jaiswal to establish the alleged transactions, identify other entities involved and trace the flow of funds, officials said. The allegations remain subject to investigation and judicial proceedings.