In a significant breakthrough in its ongoing crackdown on fraudulent Goods and Services Tax (GST) networks, the Directorate General of GST Intelligence (DGGI), Raipur Zonal Unit, has arrested Abhishek Pathak, alleged to be one of the key operators of a fake Input Tax Credit (ITC) racket involving transactions worth Rs 16.02 crore. Pathak, proprietor of M/s Samriddhi Trading, was arrested from Shahjahanpur in Uttar Pradesh following sustained efforts by DGGI investigators. Officials said the accused had remained out of the agency’s reach for nearly a year and had repeatedly ignored summons issued during the course of investigation. According to DGGI findings, M/s Samriddhi Trading fraudulently availed fake ITC of approximately Rs 4.87 crore and further passed on ineligible tax credit worth about Rs 5.33 crore to various beneficiary firms. Investigation subsequently revealed Pathak’s links with M/s Khyati Enterprises, where he allegedly played a crucial role in managing and operating the fake ITC network. Officials stated that Khyati Enterprises independently availed fake ITC of around Rs 11.14 crore and transferred the fraudulent credit to multiple downstream entities.

 

The combined investigation has so far uncovered a network involving fake ITC transactions worth approximately Rs 16.02 crore. After his arrest, DGGI officials obtained transit remand from a local court in Uttar Pradesh and brought the accused to Raipur. He was subsequently produced before the competent court and remanded to judicial custody. Sources familiar with the investigation said evidence gathered so far points to Pathak being among the principal operators of the fraudulent tax credit syndicate. Investigators are examining financial trails, beneficiary entities and associated firms that may have received or utilised the fake credits. Notably, another key accused in the same network, Aman Singh, was arrested by DGGI Raipur in March 2026 and remains in judicial custody. Officials believe the network extends beyond the presently identified entities and are probing the role of additional individuals and firms. The arrest assumes significance as it is understood to be the first major arrest made by DGGI Raipur after Principal Additional Director General Sujit Malik assumed charge on May 18, 2026. Officials indicated that further searches, arrests and disclosures are likely as the investigation progresses.