Two men have been arrested in connection with an alleged Goods and Services Tax (GST) fraud worth nearly Rs 100 crore, involving the creation of a shell company, police confirmed on Saturday. Several other suspects are still at large, and a manhunt has been initiated. Investigations are also underway to explore a potential link to Pakistan, they added.

The two accused, Ashutosh Kumar Jha and Vipin Kumar Jha, were arrested by Arunachal Pradesh police in Darbhanga, Bihar, on Saturday.

According to police officer Randhir Kumar Jha, "They created a fake company called Siddhi Vinayak Trading and issued a fake invoice of Rs 658 crore for GST. In return, they received Rs 99.31 crore as a tax refund from the government. The money was then withdrawn illegally and embezzled by everyone involved in the company."

Both accused were taken to Arunachal Pradesh after a Darbhanga court granted transit remand on Saturday.
An official also revealed that the accused used the name and photo of Sachin Meena, the husband of Seema Haider, who had come to India from Pakistan. Following this discovery, the police are investigating to determine if the accused has any connections with individuals in Pakistan.

When questioned by the media, Vipin Kumar Jha, one of the arrested accused, attempted to avoid answering but acknowledged hearing about the Rs 100 crore embezzlement.
The Arunachal Pradesh police have filed a fraud case and are investigating the incident from all possible angles, according to authorities.