UP Special Task Force Uncovers Massive Rs 45 Crore GST Evasion Network
The Uttar Pradesh Special Task Force (STF) has made a significant breakthrough in combating financial fraud by exposing a sophisticated GST evasion racket valued at approximately Rs 45 crore. This elaborate scheme was operated through a network of over 100 shell companies, meticulously designed to bypass tax regulations.
Kingpin Arrested in Delhi Operation
In a coordinated operation on Wednesday, STF officials successfully apprehended the alleged mastermind of the operation, Mohd Zahid, from the Jagatpur area of Delhi. Zahid had been evading authorities since last year, making his capture a crucial development in the ongoing investigation.
With Zahid now in custody, the total number of individuals implicated in this case has increased to six. This includes five suspects who were arrested in June of the previous year, highlighting the persistent efforts of law enforcement to dismantle this criminal network.
Modus Operandi: Exploiting Job-Seekers for Fraud
According to STF Meerut unit ASP Brajesh Kumar, the criminal gang employed a deceptive strategy to execute their fraudulent activities. They systematically collected identity documents from unemployed individuals under false pretenses, promising them employment opportunities or loans.
The gang then utilized these documents to establish fictitious firms and generate bogus invoices, thereby evading Goods and Services Tax (GST) payments. Investigators revealed that the perpetrators paid approximately Rs 10,000 for each bank account they acquired, using these accounts along with SIM cards and IDs to create fake GST entities across the country.
Case Origins: A Victim's Discovery
The scam first came to light when Ashwani Kumar, a resident of the Khatauli police station area in Muzaffarnagar, received an unexpected GST notice. Upon investigation, he alleged that his Aadhaar card, PAN card, and other personal documents had been obtained through a messaging app, where he was misled with promises of employment.
These documents were subsequently used to register a fake firm named AK Traders. This entity issued fraudulent bills amounting to a staggering Rs 248 crore and fraudulently claimed Rs 45 crore in GST refunds. In response to these revelations, a formal case was registered in 2024 under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and the Information Technology Act.
Investigation Findings and Previous Arrests
During interrogations, Zahid disclosed to investigators that the gang had been actively operating this scheme for approximately four years. This admission underscores the prolonged nature of their illicit activities and the scale of their operations.
Earlier arrests in connection with this case included individuals identified as Ratanaram, Omprakash, Hanuman, Budh Ram, and Santosh Kumar, all apprehended from Bengaluru. These arrests demonstrate the interstate reach of the criminal network and the collaborative efforts required to address such fraud.
Parallel Crackdown in Bijnor
In a related development, Bijnor police have conducted a separate crackdown on another fake GST firm racket. This operation led to the arrest of four accused individuals, while three others, including the alleged gang leader, remain at large and are currently absconding.
Police officials reported seizing forged identity documents, records pertaining to 30 firms, and multiple mobile phones during this raid. These seizures are expected to provide further evidence and insights into the methodologies employed by such fraudulent operations.
The uncovering of these interconnected rackets highlights the ongoing challenges in combating financial fraud and tax evasion in India. Authorities continue to emphasize the importance of vigilance among citizens regarding the security of their personal documents and the risks associated with sharing sensitive information online.
