In a major breakthrough, police have arrested seven individuals allegedly involved in a massive GST tax evasion racket valued at over Rs 524 crore. The scam, which spanned multiple states, was uncovered during an investigation into fraudulent GST registrations and fake business transactions, officials confirmed on Friday.
According to DCP (West) Rajarshi Raj Verma, the scam was unearthed after police traced the creation of fake Aadhaar cards and documents back to an e-Mitra and Computer Center in the Masuriya area of Jodhpur.
"It was found that the accused were preparing fake documents, which were then used for fake GST registrations and tax evasion. These documents were also being used for other illegal activities," Verma stated.
240 Fake Firms Across States
During the investigation, it was revealed that the gang had floated 240 bogus firms across several states. These shell entities were used to fabricate e-way bills and show fictitious transactions, enabling the suspects to fraudulently claim input tax credit and evade GST. This resulted in an estimated revenue loss of Rs 524 crore to the government exchequer.
Fake PANs, Bank Accounts, and GST Registrations
The accused were charging Rs 20,000 to Rs 30,000 to prepare fraudulent identity documents. The gang also maintained fake stamps to forge PAN cards, which were used to open bank accounts under the guise of GST-registered firms.
The mastermind of the operation reportedly used these forged credentials to set up fake businesses and carry out various financial frauds beyond GST violations, the police said.
Ongoing Investigation
So far, seven individuals have been arrested, and more arrests are likely as the investigation continues. Authorities are now working to identify other accomplices and examine the extent of the financial network that enabled the fraud.
The case underscores the urgent need for stricter verification in GST registrations and tighter oversight over e-service centers involved in government documentation.
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