Delhi Police's Cyber Crime Unit has arrested two men, including a practicing advocate, for allegedly operating a network of bogus GST firms used to issue fraudulent bills and manipulate GST settlements.
The racket came to light after a resident of Sagarpur lodged a complaint at South West Delhi's cyber police station. The complainant claimed that two GST registrations had been issued in his name without his knowledge. Investigations revealed that these fake firms, created using his PAN and Aadhaar details, had engaged in high-value transactions, causing him both financial loss and reputational damage.
According to DCP (South West) Amit Goel, a case was registered and a technical investigation was launched. Surveillance led the police to Panipat, where the first accused, a 27-year-old associate of the advocate, was apprehended. During questioning, he disclosed the involvement of a 45-year-old advocate from Burari, who masterminded the operation.
The lawyer had absconded to Kairana in Uttar Pradesh but was later tracked down and arrested. Further investigation uncovered that the duo procured identity documents, such as PAN cards, Aadhaar cards, rent agreements, SIM cards, and email addresses, to establish fake GST entities. These firms were then used to upload counterfeit invoices on the GST portal, enabling illegal tax claims.
Police revealed that credentials for such fake firms were sold to the accused by local associates in Delhi for Rs 25,000 to Rs 30,000 per firm. Once in possession, the accused would alter the contact details linked to the GST accounts and begin operations by issuing fake bills through specialized software.
The younger accused, who studied up to Class 12, managed the technical side, including credential manipulation and fake invoice generation. His senior partner, the advocate, handled the procurement of firms and legal documentation through his professional network.
Authorities are now probing deeper to identify more individuals connected to the scam and ascertain the extent of tax evasion involved. The case also raises concerns over the misuse of personal documents and calls for tighter KYC and data security measures in India's GST registration process.
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