AI platform detects alleged ₹5,700 crore GST fraud network involving 1,500 shell companies in India

Innefu Labs, an Indian artificial intelligence company, said they have identified a suspected GST fraud network involving more than 1,500 registered businesses and an estimated ₹5,700 crore in potentially fraudulent input tax credit (ITC). Prophecy Eagle I, the company’s AI-powered financial intelligence platform, was used to identify the network by analyzing financial data and business registrations across various jurisdictions.

According to Innefu Labs, suspected transactions happened during one fiscal year. There were no fraudulent GST registrations or late returns, which makes it challenging to detect suspicious activity through individual compliance checks, the company said.