Gonda Police Uncover Sophisticated Inter-State GST Fraud Operation
In a significant crackdown on organized financial crime, the Gonda police have successfully dismantled a highly sophisticated inter-state racket involved in illegal scrap trading and large-scale Goods and Services Tax (GST) fraud. The operation, which culminated on Saturday, led to the arrest of three key accused who are alleged to have siphoned off more than ₹4 crore in tax revenue through a complex web of forged documents, fictitious firms, and manipulated electronic waybills.
Coordinated Police Action and Arrests
The decisive action was the result of a meticulous joint investigation conducted by the Kotwali Nagar police and the crime branch cyber cell. Following months of intensive technical surveillance and rigorous document verification, authorities moved to apprehend the suspects. Superintendent of Police Vineet Jaiswal identified the arrested individuals as Suraj Gupta alias Devi Prasad, originally from Pandey Tikri in Wazirganj but currently residing in Chandigarh; Shubham Gupta of Nawabganj; and Ramteerath Verma of Lambhua in Sultanpur. Police described them as integral members of a well-organized criminal syndicate with operations spanning multiple states.
Modus Operandi: Shell Firms and Forged Documentation
According to detailed investigative findings, the gang established and operated numerous shell companies using forged identities and fraudulent documentation. These non-existent or non-functional entities were strategically utilized to generate fabricated invoices and e-way bills, thereby facilitating the illegal transportation of scrap material while systematically evading GST payments.
The accused employed deliberate manipulation of logistics details within e-way bills, frequently listing false loading points such as Raipur in Chhattisgarh and delivery destinations like Shimla in Himachal Pradesh. In reality, the actual consignments were being transported from Gonda and its surrounding areas to Gobindgarh in Punjab, a major hub for scrap processing. During interrogation, the accused reportedly confessed to dispatching more than 100 truckloads of scrap using these forged e-way bills, resulting in an estimated tax loss exceeding ₹4 crore to the government.
Uncovering the Fraudulent Network
The investigation revealed that several firms implicated in the operation were either completely non-existent or non-functional at their registered addresses. Notable examples include:
- Pisha Traders in Chhattisgarh
- Adhiraj Traders in Shimla
- Muniji Transport in Patna
Authorities discovered that the GST registrations of some of these firms had already been suspended, yet they continued to be exploited for generating fraudulent documents, highlighting systemic vulnerabilities.
Initial Discovery and Evidence Collection
The racket first came to light on September 5, 2025, when Kotwali police intercepted a truck near Munnan Khan Chauraha. The driver claimed the scrap was loaded from Nawabganj in Gonda and was being transported to Punjab. However, scrutiny of accompanying documents revealed glaring inconsistencies—while the physical origin and destination differed, the e-way bill inaccurately mentioned Raipur (Chhattisgarh) and Shimla (Himachal Pradesh). Further inspection uncovered 1,760 kg of excess scrap beyond the declared weight, confirming manipulation of invoices and transport details.
From the accused, police recovered four mobile phones, two Aadhaar cards, and a PAN card, which are currently being analyzed for digital evidence. This includes transaction records and potential links to other accomplices within the network.
Wider Criminal Network and Ongoing Investigation
Officials disclosed that multiple cases linked to the same firms and modus operandi have been registered in various districts, including Moradabad, Azamgarh, Bareilly, Hardoi, Varanasi, and Ghazipur. One of the accused also possesses a criminal history in Sultanpur, indicating the existence of a broader, more extensive network.
Superintendent Jaiswal emphasized that the arrests were made only after establishing concrete evidence of forgery, tax evasion, and organized criminal activity. Police suspect that additional individuals, including transporters and beneficiaries in other states, may be involved in the racket. Efforts are actively underway to trace absconding members, identify financial beneficiaries, and comprehensively assess the total scale of the fraud.
Authorities have initiated coordination with GST regulatory bodies and other state agencies to further tighten the investigation and prevent similar fraudulent activities in the future.
