GST Intelligence Branch’s Gurugram Zonal Unit busted a major fraudulent Input Tax Credit (ITC) racket involving 461 fake entities, who had forwarded a fraudulent ITC of Rs. 863 crores.

“A large number of falsified/transformed/fake electronic copies of documents such as rental contracts, electricity bills, aadhar card, driver’s license, PAN card, etc. were detected in the repossessed laptops of this secret office, which were used to create and operate their fake entities,” the Ministry of Finance said in a statement released Thursday.

Tax authorities have arrested two key agents in the case.

Initial investigations indicate that the fraudulent ITC credit was eventually used by the metal and iron and steel sector, according to the statement from the Ministry of Finance.