Ranchi, October 2, 2026 (Yes Punjab News)
A Jamshedpur-based businessman and his son have been sent to judicial custody by a Special Prevention of Money Laundering Act (PMLA) Court following their arrest by the Enforcement Directorate (ED) in connection with an alleged GST fraud involving approximately Rs 734 crore, an official said on Friday.
The ED arrested Gyanchand Jaiswal, alias Bablu Jaiswal, and his son, Raj Jaiswal, on September 30. According to an official statement, the agency questioned the two to gather information about the alleged fraudulent GST transactions and the movement of funds before producing them before the Special Court on Thursday for custody proceedings.
The arrests followed searches at several locations in Jamshedpur, Adityapur, Gamharia and Kolkata. After their medical examinations, the accused were brought to Ranchi by the ED team.
The agency is investigating an alleged fraud involving the use of fake invoices to claim input tax credit (ITC) without any actual purchase or sale of goods. Investigators suspect that shell companies and paper transactions were used to facilitate large-scale misuse of ITC.
During the search operation, the ED examined premises linked to Gyanchand Jaiswal, his auditor Sanjay Parekh and other individuals. Officials said the searches led to the examination of business documents, GST records, banking and financial transaction details, as well as electronic devices.
The ED has initiated action under the Prevention of Money Laundering Act (PMLA) and is tracing transactions allegedly routed through shell companies to establish the flow of funds.
The initial investigation into the case was conducted by the Directorate General of GST Intelligence (DGGI), Jamshedpur, which reportedly detected the alleged misuse of ITC through fake invoices and shell companies.
According to a 2024 order of the Jharkhand High Court, Gyanchand Jaiswal was arrested in June 2024 in a case registered under the GST Act and was subsequently remanded to judicial custody.
The ongoing ED investigation has reportedly identified several companies and alleged fraudulent transactions linked to the network. The agency had also taken action against other businessmen from Jamshedpur and Kolkata in connection with the case in 2025.
The allegations are under investigation, and the accused are subject to the due process of law.
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