Lucknow: The crime branch has successfully busted a major GST evasion racket, uncovering an intricate network of fake firms and fraudulent registrations used to siphon off input tax credit (ITC). The ongoing investigation has so far identified four bogus companies, 107 suspicious GST registrations, and financial transactions amounting to nearly ₹2.5 crore, police officials confirmed.
Key Accused Arrested
The key accused, Buddhi Prakash Awasthi (35), a native of Sitapur currently residing in Faizullaganj, was arrested on June 19. Investigators revealed that Awasthi played a central role in setting up shell entities and operating them using forged documents. His arrest marks a significant breakthrough in the case.
Origin of the Case
The case originated from a complaint filed by assistant commissioner (state tax) Abhimanyu Pathak in August 2025 regarding Altamas Traders. The firm allegedly secured GST registration using fake rent agreements and claimed fraudulent ITC. Subsequently, an FIR was lodged at Itaunja police station under charges of cheating and forgery.
Investigation Details
During the probe, police traced 107 GST-linked connections, indicating the presence of a wider syndicate. The firms found involved include Buddha Enterprises, Supreme Enterprises, Kumar Traders, and Altamas Traders. Another firm, Sunlight Enterprises, is currently under scrutiny. Police said Awasthi rented shops locally to obtain GST registrations and generate fake invoices, thereby facilitating the fraud.
ADCP (Crime) Kiran Yadav commented, “This case reflects a recurring pattern where fraudsters exploit unsuspecting individuals and loopholes in the GST registration process to create fake firms and claim fraudulent ITC.” The authorities are now working to identify other members of the syndicate and prevent further misuse of the system.
