New Delhi, Oct. 2 -- The Enforcement Directorate (ED) has arrested two persons in connection with an investigation into a GST Input Tax Credit (ITC) fraud case.

ED investigation in the case was initiated based on multiple complaints filed by the Directorate General of GST Intelligence (DGGI), Jamshedpur (Jharkhand), which had unearthed a sophisticated fraud involving the generation and passing on of fake ITC.

In a statement, the federal agency said the investigation revealed that the syndicate had created a web of 135 shell companies which existed only on paper and were used to issue bogus invoices worth over Rs 5,000 crore without any actual supply of goods or services.

"Through this modus operandi, the syndicate fraudulently generate...