Officials of the Directorate General of GST Intelligence (DGGI), Ahmedabad Zonal Unit, have arrested the alleged mastermind behind a massive ₹1,825 crore GST refund fraud at Indira Gandhi International Airport.
The accused, Kapil Chugh, was held on April 19 upon his arrival from Dubai after evading multiple summons.Authorities said Chugh had ignored at least 22 summons and fled abroad after orchestrating the fraud across several jurisdictions. Investigations revealed he, along with associate Vipin Sharma, ran a well-organised network of dummy firms to fraudulently claim Input Tax Credit (ITC) and secure refunds.The network allegedly used fake invoices—mainly for high-value tobacco products—without actual movement of goods. These invoices were circulated through layers of shell entities to create a false trail of transactions and inflate ITC. The accumulated credit was then routed to selected firms posing as exporters, particularly from Kandla Special Economic Zone.
Investigators found that low-value or unaccounted tobacco products were falsely declared as premium goods like kimam or jarda and exported at inflated prices, despite no real manufacturing setup.
Many exports were found to be either fictitious or grossly exaggerated, supported by fake transport documents and dubious e-way bills.Financial analysis showed circular fund movements with no genuine business activity.
Several firms shared common contact details, IP addresses, and accounting staff, indicating centralised control by the masterminds.Chugh is also accused of siphoning off around ₹11 crore from Yes Bank by inflating export turnover.
He has been charge-sheeted by the Central Bureau of Investigation in another fraud case. Meanwhile, Securities and Exchange Board of India (SEBI) has taken action against Vipin Sharma, managing director of Elitecon, for inflating company valuation using bogus billing linked to GST fraud.
Officials said further investigation is underway to trace the full extent of the scam and identify other beneficiaries.