ED Busts ₹658 Crore Fake ITC Racket; Raids Across Bengal, Jharkhand, Manipur

• The Enforcement Directorate (ED) has initiated a major crackdown on a ₹658 crore fake Input Tax Credit (ITC) fraud.
• Coordinated searches are being conducted across West Bengal, Jharkhand, Manipur, and other locations.
• The investigation, led by ED's Itanagar zonal unit, targets individuals and entities involved in the alleged tax fraud.
• Firms are accused of fraudulently claiming ITC using bogus invoices without actual supply of goods or services, causing significant loss to the exchequer.
• The probe indicates money laundering and the use of 58 shell companies, including M/s Siddhi Vinayak Trade Merchants, to route funds and claim ₹99.31 crore in fake ITC.