Hardoi Police Cracks Down on Major GST Fraud, Arrests Three Delhi Residents
In a significant crackdown on financial crime, Hardoi Police on Saturday arrested three Delhi natives for orchestrating an elaborate GST fraud scheme involving fake firms and fraudulent input tax credit (ITC) claims worth a staggering Rs 16.5 crore. The accused allegedly created a network of shell companies and fabricated purchase and sale transactions on paper to evade taxes, causing substantial loss to the government exchequer.
Complaint and Investigation Details
The case was registered on June 24 last year at the Kotwali City police station based on a formal complaint filed by state tax department deputy commissioner Ravindra Kumar. Following intensive investigations, police recovered crucial evidence including two laptops and three mobile phones from the three accused individuals.
The arrested persons have been identified as Himanshu Kumar of Rajouri Garden, Nishant Dargan of Hari Nagar, and Yogendra Singh Fatryal of Vinod Nagar, all residents of Delhi. Police investigations revealed that the accused registered bogus firms in Hardoi using forged documents and conducted fake transactions primarily through a firm named ‘Quick N Book Company’.
Modus Operandi of the Fraud Scheme
Officials detailed one specific example of the fraudulent operation. A firm called Ali Enterprises was registered in Hardoi on January 1, 2024, purportedly for garment business. Scrutiny of GST filings revealed that in March 2025, this firm showed fake purchases worth Rs 66.6 crore from a Ghaziabad-based company and fraudulently claimed ITC worth Rs 16.5 crore based on these fictitious transactions.
Further investigation confirmed that neither actual goods were supplied in these transactions, nor was any legitimate tax deposited to the government. The probe exposed a sophisticated network of fake billing and tax evasion involving multiple firms, indicating a wider criminal operation beyond the immediate arrests.
Wider Network of Financial Fraud
Police officials explained that the arrested individuals created an intricate chain of fictitious transactions across multiple firms to illegally claim ITC benefits. This systematic approach allowed them to generate substantial fraudulent claims while avoiding detection through normal auditing processes.
The case highlights growing concerns about sophisticated GST fraud schemes that exploit loopholes in the taxation system. Authorities emphasized that such operations not only cause direct financial loss to the government but also undermine the integrity of the GST framework designed to streamline India's taxation system.
Investigations are ongoing to uncover the full extent of this fraud network and identify any additional individuals or entities involved in the scheme. Police have indicated that more arrests might follow as they continue to examine digital evidence and financial records recovered from the accused.
