Solapur Lawyer Arrested for ₹100 Crore Fake GST ITC and Shell Companies Scam
The Directorate General of GST Intelligence (DGGI) has arrested a practicing lawyer, Sajid Ahmed Sheikh, in Solapur for orchestrating a ₹100 crore fake GST invoice scam. The investigation has uncovered a network of 30 shell companies and is expanding to include more suspects.
Gst FraudShell CompaniesSajid Ahmed SheikhDggiTax EvasionReal EstateMay 24, 2025
Following his arrest, Sheikh was placed under judicial custody for 14 days and is currently held at Kalamba Central Jail. The arrest came after intelligence inputs prompted the DGGI officers to conduct a thorough raid at Sheikh’s office in Solapur. During this raid, the officers seized multiple electronic devices, including his computer and mobile phone. A forensic analysis of these devices yielded significant evidence, which has led the agency to broaden its investigation to include 12 additional suspected shell companies operating within the region.
Authorities suspect that the scope of this fraudulent operation extends beyond Sheikh and may involve various stakeholders, such as traders, real estate developers, and jewellers. These parties could potentially be complicit in the fake ITC claims linked to the scam. The ongoing investigation aims to uncover the full magnitude of the elaborate tax evasion racket and bring all involved parties to justice.
The investigation continues as officials work to dismantle the network of shell companies and expose the broader nexus behind this significant GST fraud. The DGGI is committed to ensuring that all individuals and entities involved in this scam are held accountable for their actions and that the integrity of the GST system is maintained.
Frequently Asked Questions
What is the value of the GST invoice scam?
The GST invoice scam orchestrated by Sajid Ahmed Sheikh is valued at over Rs. 100 crore.
How many shell companies were involved in the scam?
Sajid Ahmed Sheikh established a network of 30 shell companies to carry out the scam.
What is the role of Input Tax Credit (ITC) in this scam?
The shell companies were used to generate fake invoices to fraudulently claim Input Tax Credit (ITC).
What evidence was found during the raid on Sheikh’s office?
Multiple electronic devices, including his computer and mobile phone, were seized, and a forensic analysis of these devices provided significant evidence.
Who else might be involved in the scam?
Authorities suspect that the scam involves various stakeholders, such as traders, real estate developers, and jewellers.
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