The Karnataka Commercial Taxes Department has revealed a significant Input Tax Credit (ITC) fraud scheme involving transactions worth ₹2,384 crore (approximately $288 million USD). The recent arrests of Hussain Baig and Saleemulla Baig bring the total number of individuals detained this year to seven. The investigation uncovered a network of 127 fake firms that allegedly facilitated fraudulent GST claims through the creation of bogus invoices linked to transactions in tungsten carbide scrap and e-waste. Notably, Saleemulla Baig is suspected of receiving fake ITC worth ₹382 crore through transactions valued at ₹2,172 crore, while Hussain Baig allegedly obtained ₹35 crore in fake ITC from transactions totaling ₹212 crore. Authorities also flagged irregularities at SKS Traders, where turnover surged from ₹50 crore to ₹900 crore within three years, raising suspicions of fabricated transactions. The investigation is ongoing as officials work to identify further beneficiaries and the full extent of the fraudulent invoicing network.