The Commissionerate police and the State Tax department have arrested four individuals for allegedly defrauding the government of Rs 37.87 crore by creating fake companies in Kanpur. The accused have been remanded to judicial custody following their arrest on Sunday.
The action was initiated based on a complaint filed by Sanjay Kumar Singh, Assistant Commissioner (Area D), State Tax Department, after which an FIR was registered at Kalyanpur police station on June 14. Acting on the complaint, the police formed a Special Investigation Team (SIT) to probe the alleged tax fraud.
Fake GST Registration Using Forged Documents
During the investigation, police found that a firm named Kumar Enterprises had fraudulently obtained GST registration at a residential address in Swaroop Nagar, Kanpur, using forged documents. Notably, no business activity was being carried out from the said premises.
The building owner confirmed that he had neither rented out the property nor signed any rental agreement, further strengthening the case of document forgery.
Fake Sales of Over Rs 210 Crore Detected
Data analysis from the GST portal revealed that the firm had shown fake sales amounting to Rs 155.89 crore in FY 2024-25 and Rs 54.83 crore in FY 2025-26. These bogus transactions resulted in GST evasion worth Rs 37.87 crore, officials said.
Arrests and Recovery
Following the directive of Police Commissioner Raghubir Lal, the SIT arrested Bablu Kumar, Deepanshu Sharma, Prince Pandey, and Bindeshwar Pandey from Gautambuddh Nagar on December 14. During raids, police recovered laptops, multiple mobile phones, and several SIM cards, suspected to have been used in the fraudulent activities.
Accused Sent to Jail
Confirming the development, Kalyanpur police station in-charge Rajendrakant Shukla stated that all four accused were produced before the court and subsequently sent to jail.
The case highlights the growing coordination between tax authorities and law enforcement agencies in tackling fake GST registrations and input tax credit fraud, which remain a key focus area for the State Tax Department.
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