Ranchi- The Enforcement Directorate (ED) has arrested Jamshedpur-based businessman Gyanchand Jaiswal, alias Bablu Jaiswal, and his son Raj Jaiswal in connection with an alleged GST fraud involving transactions of around Rs 734 crore, officials said on Thursday.
The arrests were made late Wednesday night after ED teams conducted searches at multiple locations in Jamshedpur, Adityapur, Gamharia and Kolkata. Following medical examinations, the two were brought to Ranchi and are expected to be produced before a court later on Thursday.
According to the ED, the case centres on the alleged generation and use of fake invoices to claim input tax credit (ITC) without any corresponding purchase or sale of goods. Investigators suspect that transactions were recorded only on paper to facilitate wrongful claims of tax credit.
The agency is also examining the role of shell companies allegedly used in the network and tracing the movement of funds linked to the suspected transactions.
During Wednesday’s searches, ED officials examined premises associated with Gyanchand Jaiswal, his auditor Sanjay Parekh and other individuals linked to the investigation. Business records, GST-related documents, bank and financial transaction details, as well as electronic devices, were examined as part of the probe, officials said.
The action has been initiated under the Prevention of Money Laundering Act (PMLA), with the ED pursuing the money-laundering angle arising from the alleged GST fraud.
The case originated from an investigation by the Directorate General of GST Intelligence (DGGI), Jamshedpur, which had detected alleged misuse of input tax credit through fake invoices and companies suspected of having little or no genuine business activity.
The ED’s subsequent investigation has reportedly identified several companies and transactions allegedly connected to the wider network. The agency had also taken action against other businessmen from Jamshedpur and Kolkata in 2025 as part of the investigation.
Gyanchand Jaiswal had previously been arrested in June 2024 in a case registered under the GST Act, according to a Jharkhand High Court order from the same year. He was subsequently remanded to judicial custody.
The latest arrests are expected to help investigators establish the alleged role of the two accused, identify the companies involved and trace the flow of funds connected with the suspected transactions. The investigation is continuing.
The allegations against the accused remain subject to the judicial process.
–IANS