Itanagar ITC Scam: ED Freezes ₹14.85 Crore in Proceeds of Crime
(By Syed Ali Taher Abedi)
Itanagar, March 31: In a significant crackdown on financial fraud, the Directorate of Enforcement (ED), Itanagar Sub-Zonal Office, has provisionally attached assets worth ₹14.85 crore under the provisions of the Prevention of Money-Laundering Act (PMLA), 2002.
The action follows an extensive investigation into the fraudulent availment and utilisation of Input Tax Credit (ITC), officials said on Tuesday.
The attachment, carried out through a Provisional Attachment Order dated March 30, 2026, covers both movable and immovable properties.
Among the key assets attached is shareholding worth ₹11.88 crore held by a partner of M/s Ganesh International in a listed entity.
Additionally, immovable properties linked to three other individuals located in Howrah and Hooghly districts of West Bengal, as well as in Guwahati, have also been brought under the ambit of attachment.
In a parallel development, the ED has filed a Prosecution Complaint on the same day against 15 accused persons, alleging their involvement in orchestrating a large-scale fake ITC racket.
According to officials, the investigation was initiated on the basis of an FIR registered under various sections of the Indian Penal Code, 1860, pertaining to scheduled offences under the PMLA.
As part of the probe, the ED conducted coordinated search operations on January 20, 2026, at 10 locations spread across Arunachal Pradesh, Kolkata, Jharkhand, and Manipur.
These searches led to the seizure of incriminating documents and digital evidence, while statements of key individuals were also recorded.
Preliminary findings of the investigation point to a sophisticated network of shell entities allegedly created to generate and circulate fake ITC.
Central to the fraud was M/s Siddhi Vinayak Trade Merchant, which investigators have identified as a non-existent entity.
It is accused of fraudulently generating fake ITC amounting to approximately ₹99.31 crore by issuing invoices without any actual supply of goods.
The probe further revealed that this fictitious ITC was layered and routed through a complex web of shell and non-operational firms, including M/s AC Enterprise, M/s Riya Rishita Enterprise, M/s Prince Enterprise, M/s P Enterprise, and M/s Rangoli Enterprise, among others.
Officials noted that these entities were not functioning at their declared business premises, and summons issued to them often went unserved.
Investigators also uncovered that fake invoices were issued for a wide range of commodities such as cement, leather goods, electrical items, and iron and steel products.
In several instances, individuals linked to these entities reportedly admitted that no actual sale or purchase of goods had taken place.
A detailed financial trail analysis highlighted the role of M/s Riya Rishita Enterprise as a key intermediary, allegedly facilitating the transfer and layering of fictitious ITC across multiple entities.
The investigation further established that several beneficiary firms ultimately received and utilised the fraudulent ITC.
These include M/s Ganesh International (now converted into Ganesh Infraworld Limited) controlled by Vibhoar Agrawal, M/s Phoenix Hydraulics controlled by Dileep Kumar Agrawal, M/s Fama Marketing controlled by Mrig Mrinal Dhawan, and M/s Anjani Impex controlled by Dhaneswar Prasad Yadav.
Collectively, these entities are alleged to have availed fake ITC amounting to ₹14.85 crore without any genuine underlying trade transactions.
Officials stated that the fraudulently obtained ITC was used to discharge Goods and Services Tax (GST) liabilities through fabricated invoices and e-way bills.
The beneficiary firms reportedly showed disproportionately high turnovers that were not supported by actual business activity, indicating a deliberate attempt to launder proceeds of crime through layered transactions.
The ED has described the case as a clear instance of systematic financial manipulation involving shell entities, fake documentation, and laundering of illicit funds.
Further investigation into the matter is currently underway, and officials have indicated that additional attachments and prosecutions may follow as more evidence comes to light.
