In a significant crackdown on financial crime, the Kanpur Commissionerate Police and the Uttar Pradesh State Tax Department have dismantled a sophisticated racket involved in massive Goods and Services Tax (GST) evasion. The joint operation led to the arrest of four individuals who are accused of creating fictitious companies to dodge taxes amounting to a staggering Rs 37.87 crore.
The Raid and Arrests
The arrests were executed on Sunday, December 14, following a directive from Kanpur Police Commissioner Raghubir Lal. A Special Investigation Team (SIT) apprehended the four accused—Bablu Kumar, Deepanshu Sharma, Prince Pandey, and Bindeshwar Pandey—from the Gautambuddh Nagar area. During the operation, authorities seized crucial digital evidence, including laptops, multiple mobile phones, and SIM cards from the possession of the accused.
How the GST Fraud Was Uncovered
The investigation was set into motion based on a formal complaint filed by Sanjay Kumar Singh, the Assistant Commissioner of Area D in the State Tax Department. Consequently, a First Information Report (FIR) was registered at the Kalyanpur police station on June 14.
Probe details revealed that a firm named Kumar Enterprises fraudulently acquired GST registration using a residential address in Kanpur's Swaroop Nagar. The registration was secured with forged documents, even though no genuine business activity ever took place at the location. The actual owner of the building confirmed to investigators that he had never rented out the space or signed any rental agreement with the said company.
A thorough data analysis from the official GST portal exposed the sheer scale of the fraud. The fake entity showed bogus sales of Rs 155.89 crore in the 2024-25 financial year and Rs 54.83 crore in 2025-26. This elaborate scheme of generating fake invoices and sales led to the calculated tax evasion of Rs 37.87 crore.
Legal Proceedings and Aftermath
After their arrest, all four accused were presented before a local court. The court has remanded them to judicial custody. Rajendrakant Shukla, the in-charge of Kalyanpur police station, confirmed that the legal process is underway.
This case highlights the ongoing efforts by tax authorities and law enforcement to combat organized GST fraud and financial crimes that deprive the state of crucial revenue. The use of technology for data analysis proved pivotal in tracing the fraudulent transactions and uncovering the network of fake companies.
