The ₹14.85 Crore Fraud Inside the DGGI’s Crackdown on Jharkhand’s Scrap Mafia:

The Directorate General of GST Intelligence (DGGI) has arrested a prominent scrap dealer in Jamshedpur, Jharkhand, for his involvement in a massive ₹14.85 crore GST scam.

The arrest took place on Wednesday night, February 11, 2026, following a targeted raid in the Telco area of the city.

Key Details of the Arrest

The Accused: The scrap dealer has been identified as Harshvardhan, a resident of Telco, Jamshedpur.

The Charges: He is accused of orchestrating a GST fraud worth approximately ₹14 crore and 85 lakh.

The Modus Operandi: While the specific technical details are under investigation, such scams typically involve the creation of shell companies and the generation of fake invoices to claim Input Tax Credit (ITC) without any actual movement of goods.

Legal Action: Harshvardhan was produced before a Special Economic Offenses Court, which subsequently remanded him to judicial custody (jail).

DGGI’s Investigation

Prior Summons: The DGGI had previously summoned Harshvardhan to appear for questioning regarding his business transactions, but he had repeatedly failed to comply, leading to the raid and his subsequent arrest.

Wider Network: Investigators are currently scrutinizing the accused's financial records to uncover links to other scrap dealers and businesses.

Precedent: This is not an isolated case in Jharkhand; the DGGI has been cracking down on several scrap dealers in the region involved in similar frauds. Recently, the bail of another accused scrap dealer, Gyanchand Jaiswal, was challenged in court by GST lawyers.

Why the Scrap Industry?

The scrap industry is often a target for GST intelligence because of its fragmented nature and the high volume of cash transactions, which making it easier to hide fake billing and fraudulent ITC claims.