DGGI grills accused CA in Rs 325-crore GST racket, fake credit network case at Bhubaneswar Jharpada jail

A team of officers from the Directorate General of GST Intelligence (DGGI) on Tuesday interrogated Mumbai-based chartered accountant Nilesh Yogesh Jigiowala at the high-security Jharpada Jail in Bhubaneswar, following his arrest in an alleged GST fraud of nearly Rs 325 crore.

Sources confirmed that questioning was conducted inside the prison under tight security arrangements after his judicial remand.

DGGI Interrogates Accused Inside Prison

According to reports, Jigiowala was arrested on November 6 from his residential premises in Mumbai by the DGGI Bhubaneswar zonal unit. He was subsequently produced before the court and remanded to custody.

As further evidence emerged, GST intelligence officials sought special permission to grill him inside Jharpada jail, treating the case as a continuing financial investigation rather than a closed arrest.

Sources said a dedicated DGGI team entered the jail to collect additional leads, verify suspected transactions, and trace tax credit beneficiaries linked to the alleged racket. Officials stated that the probe is intended to track money flow routes and determine the role of corporate beneficiaries who may have availed fraudulent GST credits.

Nationwide Fake Credit Network Under Scanner

Reports added that Jigiowala allegedly operated a network that helped large companies obtain illegal input tax credit (ITC) using GST numbers registered in the names of small traders and businesses. DGGI officials described the operation as a structured fraud that exploited genuine business identities to siphon off government revenue.

Preliminary findings indicate that at least 105 major firms benefited from the scheme. According to officers, the accused used smaller GST accounts as entry points to claim sizeable input subsidies for bigger corporate entities, bypassing legitimate tax payments and inflating returns.

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More Arrests Likely

As per the latest information, DGGI is examining whether the Rs 325-crore figure may rise as transaction trails widen. Officials said seized documents and digital records are now being scrutinised to determine the scale of the racket, the identities of collaborating firms, and possible internal handlers located across different states.

The Bhubaneswar zonal unit is expected to summon representatives of companies suspected of using the fraudulent tax credits. Sources indicated that the investigation will continue from inside the jail, and internal financial audits may lead to further arrests in the coming weeks.