Lucknow Police Uncover Major GST Fraud Operation Involving Fake Firms
The Lucknow police commissionerate has successfully dismantled a significant GST fraud racket, exposing substantial tax evasion and suspicious financial activities. In a coordinated operation on Friday, authorities revealed tax evasion amounting to nearly Rs 37 lakh and identified suspicious transactions exceeding Rs 4.7 crore.
Joint Operation Leads to Three Arrests
Three individuals were apprehended during a joint operation conducted by the Mahanagar police station, cyber cell, and surveillance team. According to police officials, the racket specifically targeted economically vulnerable individuals, offering them payments ranging from Rs 10,000 to Rs 15,000 in exchange for their personal documents.
The fraudulent scheme involved collecting Aadhaar cards, PAN details, bank account information, and mobile numbers from these individuals. These documents were then systematically utilized to establish fake GST firms through the creation of forged rent agreements and fabricated electricity bills.
Origins of the Investigation
The case traces back to a formal complaint filed on November 3, 2025, by Ashok Kumar Tripathi, deputy commissioner of state tax in Lucknow. Tripathi alleged that a company named K S Enterprises, registered at a fictitious address on Bhagwati Charan Verma Marg, had been fraudulently established to conduct bogus transactions in the scrap trading sector.
Police investigations revealed that the accused generated counterfeit invoices and fabricated e-way bills to present these fake transactions as legitimate business activities. This elaborate scheme enabled the illegal sale of input tax credit (ITC) on commission, creating significant revenue losses for the government.
Financial Manipulation and Arrest Details
Through these deceptive practices, transactions worth approximately Rs 4.7 crore were routed through multiple bank accounts, systematically diverting government revenue. DCP Crime Kamlesh Dixit provided specific details about those arrested in connection with the fraud operation.
- Deepak Kumar (25) allegedly utilized his personal bank account to facilitate fraudulent financial transactions
- Prashant Tiwari (25) managed fund transfers, including receiving approximately Rs 15 lakh through cheque payments
- Kailash Maurya (32) is accused of creating fake company seals and assisting in various account operations
The police emphasized that this sophisticated fraud network exploited vulnerable individuals while systematically undermining the GST system through fabricated documentation and financial manipulation. Authorities continue to investigate potential connections to broader fraud networks and additional accomplices who may have participated in this elaborate scheme.
