In one of the largest GST evasion scams uncovered in recent times, the Muzaffarnagar police have exposed a racket involving fake e-way bills, forged documents and shell firms, amounting to an estimated Rs 1,300 crore.
Acting on a tip-off, police raided the JK Complex on Muzaffarnagar Road and arrested two men - Mohammad Nadeem Saifi of Lisadi Gate and Mohammad Sameer of Sarwat, Civil Lines - on Wednesday. Several incriminating materials, including laptops, printers, fake stamps, bogus weighbridge slips, and forged GST documents, were seized.
According to SSP Sanjay Verma, the accused were preparing fraudulent GST bills, transport receipts, and e-way bills in the name of shell companies to cheat the government. During interrogation, they revealed they were working under the direction of Shadab, a resident of Jansath Road, who ran a firm and provided them access to company seals for forging documents.
Investigators found that the gang fabricated tax invoices, weighbridge slips, and e-way bills without any actual movement of goods. These files were then used to fraudulently claim 18% GST refunds, which were deposited in Shadab's account and later distributed among the group.
Police seized 120 files containing forged bills, of which the GST department has taken possession of 116 files for further scrutiny, while four remain with the police. Officials suspect the actual scale of tax evasion could rise as the probe continues.
SSP Verma confirmed that the gang had already defrauded the government of at least ₹1,300 crore. Joint Commissioner of SIB Siddhesh Chandra Dixit further disclosed that the same firm had earlier been fined over ₹1 crore for similar irregularities.
The GST department has launched a full-scale investigation and sought a month's time to complete the probe, signalling tougher action against fraudulent practices in the region.
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