Major GST Evasion Racket Busted in Lucknow, Two Arrested in Rs 1.77 Crore Fraud
In a significant crackdown on organized tax fraud, the Uttar Pradesh Police have dismantled a sophisticated goods and services tax (GST) evasion racket that operated through a network of fake firms and fabricated invoices. The operation resulted in the arrest of two individuals allegedly involved in fraudulent transactions exceeding Rs 1.77 crore.
Coordinated Police Action Uncovers Elaborate Scheme
The action was executed through a joint effort by teams from the UP Police, the cyber cell, and the surveillance unit of the Mal police station in Lucknow. According to authorities, the accused meticulously created counterfeit GST firms using forged documentation. These entities were then utilized to generate bogus invoices and fake e-way bills, facilitating illegal input tax credit transactions on a commission basis.
DCP (Crime) Kamlesh Dixit emphasized that the racket was uncovered through coordinated action involving the Mal police station, cyber cell, and surveillance teams. "It was found that the accused created multiple fake GST firms using forged documents of poor individuals. They prepared fake invoices and e-way bills to show fictitious business transactions and sold illegal input tax credit to companies for commission. The fraud involved transactions worth more than Rs 1.77 crore," Dixit stated.
Identities of the Accused and Seized Evidence
The arrested individuals have been identified as:
- Chunga Khan (43), a resident of Paharpur village under the Biswan police station in Sitapur district.
- Salman Rehmani (32), from Bansmandi, Lucknow.
During the operation, police seized three mobile phones and a laptop from the accused, which are expected to provide further digital evidence crucial to the investigation.
Origins of the Case and Legal Proceedings
The case originated from a formal complaint filed on August 28, 2025, by Naresh Verma, an assistant commissioner in the GST audit section of the state tax department. The complaint alleged that a firm named Ramkali Enterprises, registered at Ibrahim Pur in the Mal area of Lucknow, was discovered to be a completely fake entity with no legitimate business operations.
Based on this complaint, the Mal police promptly registered a case (FIR 216/25) under relevant provisions of the Bharatiya Nyaya Sanhita (BNS). An intensive investigation was launched with the specialized assistance of cyber and surveillance teams, leading to the eventual bust of the racket.
This case highlights the ongoing challenges in combating financial fraud within the GST framework and underscores the importance of inter-departmental cooperation between tax authorities and law enforcement agencies to protect public revenue.
