DGGI Ahmedabad arrests alleged mastermind of ₹1,825 crore GST refund fraud at Delhi airport
The Ahmedabad Zonal Unit of the Directorate General of GST Intelligence arrested Kapil Chugh, alleged mastermind of a GST refund fraud of about ₹1,825 crore, at IGI Airport, Delhi, on 19 April 2026 on his return from Dubai.
Summary
The Ahmedabad Zonal Unit of the Directorate General of GST Intelligence (DGGI) arrested Kapil Chugh, the alleged mastermind of a GST refund fraud of about ₹1,825 crore, at IGI Airport, Delhi, on 19 April 2026 when he returned from Dubai, the Finance Ministry said. Chugh had ignored 22 summonses. Investigators say he and an associate ran dummy firms set up with borrowed KYC documents to generate fake input tax credit through invoices for high-value tobacco products, accumulated it in firms projected as exporters, particularly from the Kandla Special Economic Zone, and claimed refunds on zero-rated supplies made under a Letter of Undertaking, with the exports largely fictitious or grossly inflated.
Key facts
- Agency
- DGGI, Ahmedabad Zonal Unit
- Accused
- Kapil Chugh (alleged mastermind)
- Amount
- About ₹1,825 crore GST refund fraud
- Arrest
- 19 April 2026, IGI Airport Delhi, on return from Dubai
- Method
- Fake ITC via dummy firms; refunds on zero-rated 'exports' (Kandla SEZ)
- Summonses ignored
- 22
Practice MCQs 2 questions
The GST refund fraud of about ₹1,825 crore, whose alleged mastermind was arrested in April 2026, was investigated by which agency?
Show answer
Correct answer: B — DGGI Ahmedabad Zonal Unit
The arrest was made by the Ahmedabad Zonal Unit of the Directorate General of GST Intelligence (DGGI).
In the ₹1,825 crore GST refund fraud, the fake input tax credit was accumulated in entities projected as exporters, particularly from which Special Economic Zone?
Show answer
Correct answer: A — Kandla SEZ
Investigators said the ineligible ITC was accumulated in firms projected as exporters, particularly from Kandla SEZ.