The Directorate General of Goods and Services Tax Intelligence (DGGI) of Ahmedabad zonal unit in Gujarat has Kapil Chugh on charges of several economic criminal cases. Chugh is accused of being “the mastermind” behind a goods and services tax (GST) refund fraud of
Authorities arrested Chugh on 19 April 2026 at Indira Gandhi International Airport in Delhi when he returned from Dubai.
He had fled to Dubai after allegedly committing the GST refund fraud across multiple jurisdictions with his associate Vipin Sharma. They are accused of fraudulently taking advantage of input tax credits (ITCs) and subsequently encashed through refund claims on account of zero-rated supplies.
They generated fraudulent ITCs after arranging fake purchase invoices of high-value tobacco products without any actual receipt of goods, it is alleged.
Authorities allege this was executed through a network of dummy firms, employees and close associates, all planned and controlled by Chugh. The invoices were passed through intermediary firms, forming a layered chain of transactions, it is alleged. The ITCs generated were passed through entities through paper transactions, creating an artificial trail.
Both Chugh and Sharma handled the GST registration, invoice generation, banking operations, filing of returns and submission of refund claims in this process.
Chugh is also accused of being involved in other economic criminal activities. Authorities allege that he siphoned off INR110 million from Yes Bank and fraudulently used credit facilities, for which the Central Bureau of Investigation has issued a charge sheet. Sharma, on the other hand, has had his by the Securities and Exchange Board of India.
In the present case, a total of 22 summons had been issued that Chugh ignored and he also failed to join investigations.
