Jamnagar: The State Goods and Services Tax (SGST) Department, Gujarat has uncovered a massive tax evasion racket exceeding ₹100 crore, masterminded by Jamnagar-based Chartered Accountant Alkesh Pedhadiya through an elaborate bogus billing network, an official statement said today.

Acting on specific intelligence and following sustained surveillance, the Department conducted simultaneous search operations on October 3, 2025, at 25 premises, including the office of Brahm Associates, a CA firm in which the prime accused is a partner, and also his residence. The operations were carried out by 27 teams drawn from GST offices across the state in terms of the provisions of the Gujarat Goods and Services Tax Act, 2017.

So far, the investigations have revealed the involvement of 14 non-genuine taxpayer (NGTP) firms in issuing fake invoices and enabling fraudulent Input Tax Credit (ITC) claims without actual movement of goods. Preliminary inquiries and statements of owners of firms under investigation indicate that many of these firms were directly controlled and managed by CA Alkesh Pedhadiya. Further, in the case of several firms, it was found that GSTIN credentials of bona fide taxpayers were misused, and during the investigations, such taxpayers have expressed shock at the exploitation of their credentials and trust by CA Alkesh Pedhadiya under the pretext of GST compliance services and have indicated that they are considering lodging FIRs for fraud and breach of trust.

During the searches, officials seized documents, computers, and other digital storage devices containing crucial evidence of fictitious invoicing and manipulation of financial records. Primary analysis revealed multiple layers of financial transactions routed through various bank accounts, indicating sophisticated fund diversion mechanisms.

Several firms under investigation have accepted the Department’s findings and have undertaken to discharge their tax liabilities, along with applicable interest and penalties.

Key findings and updates in the case:

1. Bogus transactions: Fraudulent transactions amounting to ₹560 crore identified, involving an estimated tax evasion of ₹112 crore.

2. ITC blockage and account freezing: Ineligible ITC worth ₹4.62 crore blocked; bank accounts containing over ₹1 crore frozen.

3. Asset attachment: Movable and immovable assets valued at approximately ₹36 crore provisionally attached to safeguard government revenue.

4. Tax recovery: Several taxpayers have accepted the Department’s findings and agreed to pay approximately ₹33 crore towards tax, interest, and penalties.

5. Legal proceedings: Of the 25 taxpayers under investigation, 14 taxpayers have been found to be non-genuine taxpayers (NGTP), and further action is underway to protect government revenue.

6. Other significant measures: Since the mastermind has yet to appear before the investigating officers despite several summons, a Look Out Circular (LOC) has been issued to prevent him from fleeing the country. In addition, efforts are being intensified to secure his appearance. DeshGujarat