DGGI Uncovers ₹266 Cr GST Fraud Involving Shell Companies – A Wake-Up Call for Governance & Oversight
DGGI Uncovers ₹266 Cr GST Fraud Involving Shell Companies – A Wake-Up Call for Governance & Oversight This recent revelation by the Directorate General of GST Intelligence (DGGI), Bengaluru Zonal Unit is deeply concerning. - Six shell companies. - Fraudulent invoices worth ₹266 crore . - Fake Input Tax Credit (ITC) of ₹48 crore . - Circular trading, fictitious turnover, and even stock exchange listing — all rooted in manipulated corporate structures and complicit professionals , including a Chartered Accountant acting as statutory auditor and director. This case underscores three critical concerns : Audit Integrity – The alleged involvement of a statutory auditor in orchestrating the fraud reflects a breakdown in professional ethics. Board Oversight & Due Diligence – Shell structures with no real business activity passed the scrutiny of compliance frameworks, which is alarming. Investor Risk in Listed Entities – Innocent retail investors are the collateral d...