Kanpur Police Crack Down on Major GST Fraud Network
In a significant crackdown on financial crime, Kanpur police have arrested seven individuals for their alleged involvement in a sophisticated input tax credit (ITC) fraud scheme that caused an estimated loss of approximately Rs 7.03 crore to government revenue. The arrests follow an intensive investigation into the creation of fake firms and fraudulent invoices designed to illegally claim tax benefits.
Details of the Fraudulent Operation
According to police officials, the accused orchestrated a systematic racket that involved issuing fake GST invoices without any actual purchase or sale of goods. This allowed them to unlawfully obtain ITC, effectively siphoning off crores of rupees from the public exchequer. The fraudulent activities were centered around fictitious entities, including ML Builders and Bharat Building Material, operating in the Friends Colony police station area.
SSP Brijesh Kumar Srivastava revealed that seven separate FIRs were registered by a GST officer at different police stations on various dates, prompting a coordinated investigation. Preliminary findings indicate that the same organized gang executed similar frauds in the Kotwali and Jaswant Nagar police station areas as well, using counterfeit GST registrations obtained by misusing documents of innocent individuals.
Formation of Special Investigation Team
Acting on directives from the SSP, a Special Investigation Team (SIT) was constituted to apprehend the culprits. The SIT employed a multi-faceted approach to gather evidence, leveraging:
- Analysis of IPDR and Netgrid data
- Surveillance operations
- Scrutiny of Aadhaar, PAN, and rent agreements
- Examination of banking transactions and electronic evidence
- Monitoring of GST portal login activities
- Collaboration with various chartered accountants for information
During raids, authorities recovered a laptop, fake GST invoices, e-bills, and a car without a number plate from the accused, further substantiating the charges against them.
Profiles of the Accused
The arrested individuals include a diverse group of suspects with varying backgrounds:
- Nitin Gupta: Son of a former corporator from Maksudpura, residing in Dabgran
- Tarun Agarwal: A resident of Katra Sewakali
- Ankit Jauhari and Shiva Jauhari: Cousins living in a colony opposite Tiksi temple
- Abhishek Kumar Shakya and Devesh Chandra Shakya: Residents of Katra Shamsher Khan
- Asif: A resident of Barhi Tola
Notably, the group comprises a chartered accountant, highlighting the professional expertise leveraged in the scam. Prior to these arrests, police had already taken into custody Zeeshan, a cafe operator from Mohalla Shahkamar, who is currently jailed in connection with the same case.
Broader Implications and Ongoing Probe
This case underscores the growing challenge of GST evasion through technological manipulation and identity theft. The fraudulent creation of turnover worth crores of rupees not only represents a direct financial loss but also undermines the integrity of the tax system. Police authorities have emphasized that the investigation is ongoing, with the SIT continuing to delve deeper into the network's operations to identify any additional accomplices or linked fraudulent activities.
The crackdown serves as a stern warning to those attempting to exploit loopholes in the GST framework, reinforcing the commitment of law enforcement agencies to safeguard public revenue through vigilant monitoring and robust legal action.
