Kingpin Vinod Kumar Sahay arrested from Ranchi for Rs 33 cr GST fraud using fake entities

Bhopal: In a major crackdown, Madhya Pradesh's Economic Offences Wing (EOW) has unearthed a well-organised GST fraud that involved illegally availing and transferring Input Tax Credit (ITC) worth more than Rs 33 crore. The operation, which spanned cities across Jabalpur, Bhopal, Indore, and other regions, was run by an inter-state gang allegedly led by Vinod Kumar Sahay, also known by his alias N K Khare. He was arrested from Ranchi, Jharkhand on June 25 and has been remanded to police custody.According to EOW officials, the gang created dozens of bogus firms using forged identities and documents of unsuspecting individuals. These entities existed only to generate fake GST invoices, which were used to wrongfully claim ITC — causing massive losses to the exchequer.Between 2019 and 2020, the prime accused Vinod Sahay is alleged to have approached several individuals in Jabalpur — including Pratap Singh Lodhi, Deendayal Lodhi, Ravikant Singh, and Nilesh Patel — under the pretext of helping them obtain business loans. He claimed GST registration was essential and collected personal documents like Aadhaar cards, PAN cards, photos, land records, electricity bills, and their bank account details. Using this data, he fraudulently registered several fake firms: M/s Maa Narmada Traders (in the name of Pratap Singh Lodhi), M/s Namami Traders (Deendayal Lodhi), M/s Maa Reva Traders (Ravikant Singh) and M/s Abhijeet Traders (Nilesh Kumar Patel). Sahay kept full control over these entities by managing their mobile numbers, email IDs, login credentials, bank accounts, and official letterheads. Investigation revealed that none of these firms were engaged in any real trade. However, they generated fake GST invoices showing massive outward supplies and transferred ITC to other firms without any actual movement of goods or services.The probe revealed that this fraud extended far beyond these four firms. Additional entities in Madhya Pradesh, Chhattisgarh, and Maharashtra were either shell firms or indirect beneficiaries: K D Sales Corporation (Indore): Fake billing worth Rs 64.38 crore; ITC passed on Rs 17.70 crore and Mehak Enterprises (Bhopal): Fake ITC of Rs 1.20 crore through non-existent tradeOther firms under the scanner include Jagdamba Coal Carriers, Mahamaya Traders, Dilip Traders, Ankita Steel & Coal, Amber Coal Depot, Anam Traders, and Koraj Technics. Many of them were shown as buyers or suppliers in these fake invoice chains.Vinod Sahay is also a listed director in companies such as Citron Minerals Pvt. Ltd., Garrison Coal Pvt. Ltd., Arya Coal Trading Pvt. Ltd., VK Minerals Pvt. Ltd., and JMSD Allops Pvt. Ltd., which are now being examined for similar fraudulent activities.After gathering bank trail data and technical intelligence, EOW traced Sahay to Ranchi, where he had relocated and started a coal business under a new name. He was arrested on June 25 and brought to Jabalpur. He was produced before a special court and has been sent to police remand till July 2, 2025.