Two individuals have been booked for allegedly siphoning off Rs 17 crore through fake GST claims and shell companies. The accused, identified as Vishal Kumar Jaiswal and Mohammad Mohsin, were operating under the guise of legitimate businesses using forged documents, including fake electricity bills submitted during GST registration.
The fraudulent activity surfaced last week when officials from the SGST department examined the financial records of multiple firms. The investigation revealed that Jaiswal, proprietor of Vikas Enterprises based in Naini, had claimed an ITC of Rs 12.54 crore on transactions worth Rs 6,982.67 lakh. His business, which purportedly dealt in hardware, iron, and steel, did not exist at the registered address, and the electricity bill provided was found to be fake.
A formal complaint was lodged by SGST Assistant Commissioner Rajendra Singh Yadav at the Naini police station. Based on the FIR, Jaiswal is accused of fabricating documents to illegally claim ITC without actual movement of goods.
In a separate but similar case, Mohammad Enterprises-a firm registered in the scrap business and located in Jhunsi-was also found to be a shell company. Its owner, Mohammad Mohsin (also known as Mohammed Mardan as per his PAN records), declared a turnover of Rs 1,690 lakh in FY 2024-25 and Rs 884 lakh in FY 2025-26. However, the firm's physical and transactional authenticity could not be verified. The electricity bill submitted was falsified and officials estimate a tax evasion of Rs 4.88 crore.
Cases have been registered at the Naini and Jhunsi police stations under relevant sections of the IPC and GST Act. Authorities have reiterated their commitment to intensify scrutiny on suspicious firms and clamp down on fraudulent tax claims.
This incident highlights the growing use of shell entities and counterfeit documentation to exploit GST provisions and underscores the need for stricter vetting during GST registration.
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