ED Launches Nationwide Crackdown on Rs 650 Crore Fake ITC Scam
Enforcement Directorate Targets Fraudulent Shell Companies in Multi-State Raids, Signals Robust Action Against Money Laundering
NewsArc Bureau
New Delhi, September 13, 2025 – The Enforcement Directorate (ED) has launched a sweeping operation across five states—Arunachal Pradesh, Haryana, Delhi, Tamil Nadu, and Telangana—targeting a massive Rs 650 crore fake Input Tax Credit (ITC) scam, according to an official press release issued on September 11, 2025. The raids, aimed at dismantling a network of fraudulent shell companies involved in money laundering, mark a significant escalation in the agency’s fight against financial crimes.
The operation, conducted on Thursday, focused on uncovering and disrupting a syndicate accused of generating fake ITCs to siphon off funds. The ED’s press note highlighted that the scam involved the creation of shell entities to facilitate fraudulent transactions, with “big MNCs” identified as beneficiaries of these illegal activities. In Delhi, one such entity, Prisha Exim, reportedly admitted to a turnover of Rs 200 crore, with its partners claiming ignorance of the transactions, pointing to the use of “dummy” entities to obscure the money trail.
The ED’s actions included extensive searches at multiple locations, targeting individuals and entities linked to the scam. The agency’s preliminary findings suggest a complex web of financial misconduct, with the seized evidence expected to aid in identifying the end beneficiaries. All actions were carried out under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, as the ED seeks to trace the full extent of the illicit financial flows.
In its press statement, the ED reiterated its commitment to cracking down on economic offenses that undermine India’s financial systems. The agency noted that further investigations are underway to unravel additional layers of the syndicate and ensure accountability for those involved. The operation underscores the ED’s intensified focus on financial frauds, following its announcement earlier this year to prioritize violations under the Foreign Exchange Management Act (FEMA) and other economic crimes.
This latest crackdown comes amid a series of high-profile ED actions, including recent raids in West Bengal over a sand smuggling racket and the attachment of assets worth over Rs 100 crore in a Uttar Pradesh realtor case. The agency’s proactive measures signal a broader strategy to dismantle sophisticated financial crime networks across the country.
