Major GST Fraud Busted in Noida
The Central Noida Police has made a significant breakthrough in a major financial fraud case, arresting two individuals for allegedly orchestrating a Goods and Services Tax (GST) evasion scam involving a staggering Rs 3.42 crore. The accused, identified as residents of Uttar Pradesh, are charged with creating a network of fictitious firms to illegally claim GST refunds.
How the Elaborate Scam Was Operated
According to a detailed police statement released on Monday, the two accused—Praveen Kumar from Hapur district and Satendra Singh from Bulandshahr district—masterminded an elaborate scheme. They used a range of forged documents including Aadhaar cards, PAN cards, and rental agreements to fraudulently register multiple businesses on the government's Udyam portal for MSMEs (Micro, Small, and Medium Enterprises).
The operation involved opening current accounts across various bank branches in Ghaziabad and Gautam Buddh Nagar under fake company names. All these accounts were established using completely fabricated Know Your Customer (KYC) documents that featured photographs of the accused under different identities, the police revealed.
Massive Scale of Fraud Uncovered
Investigators uncovered that the accused used nine mobile numbers to receive OTPs during the account registration processes. A deeper analysis exposed an even larger network:
- These numbers were used across 18 different IMEI numbers
- A total of 87 mobile numbers were linked to the registration of 85 fake firms
- These fictitious entities collectively claimed approximately Rs 51 crore in Input Tax Credit (ITC)
- They issued bills totaling nearly Rs 350 crore over the past five years
The police recovered several forged documents, fake company seals, and bank-related materials during their operation. The accused had developed a sophisticated method of immediately transferring the illegal GST refunds to other accounts to conceal the money trail, making detection more difficult.
This case highlights significant vulnerabilities in the system and represents a massive loss to government revenue. The investigation continues as authorities work to uncover the full extent of this sophisticated fraud network.
