Authorities have busted an interstate fake invoice racket worth ₹1,464 crore following coordinated raids in Karnataka and Tamil Nadu, officials said. The operation was carried out based on intelligence inputs about suspicious GST activities, leading to searches at multiple locations in Bengaluru, Chennai, Vellore, and Pernampattu.
During the raids, officials uncovered evidence of fake billing, bogus firms, and fraudulent input tax credit (ITC) claims, which were allegedly used to evade taxes and siphon off large sums of money. Four individuals were arrested for their suspected role in running the racket, while documents, digital records, and financial data were seized for further investigation.
The Karnataka Commercial Taxes Department said the scam involved a network of shell companies operating across states to generate fake invoices without actual movement of goods. Authorities are now probing possible links to more firms and individuals, indicating that more arrests may follow as the investigation progresses
