The Uttar Pradesh Police have busted an organised GST evasion racket operating through fake firms and bogus invoices. Two individuals were arrested for allegedly carrying out fraudulent transactions amounting to more than Rs 1.77 crore by generating fake invoices and e-way bills to claim illegal input tax credit (ITC).
The operation was conducted jointly by teams from the Mal police station, the cyber cell and the surveillance unit in Lucknow.
Accused Identified
The arrested accused have been identified as:
- Chunga Khan (43) - a resident of Paharpur village under Biswan police station in Sitapur district
- Salman Rehmani (32) - a resident of Bansmandi area in Lucknow
During the operation, police seized three mobile phones and a laptop, which are believed to contain digital evidence related to the fraudulent transactions.
Fake GST Firms Used for Bogus Transactions
According to police officials, the accused created multiple fake GST-registered firms using forged documents, often using the identities of economically weaker individuals. These shell entities were then used to generate:
- Fake GST invoices
- Bogus e-way bills
- Fabricated business transaction records
These documents were allegedly supplied to businesses seeking to fraudulently claim input tax credit (ITC). The accused reportedly charged a commission for facilitating these illegal tax benefits.
Complaint by the GST Department Triggered Investigation
The case came to light after Naresh Verma, Assistant Commissioner in the GST audit section of the State Tax Department, filed a complaint on August 28, 2025.
The complaint revealed that Ramkali Enterprises, a firm registered at Ibrahim Pur in the Mal area of Lucknow, was suspected to be a non-existent or fake entity involved in suspicious GST transactions.
Following the complaint, Mal police registered FIR No. 216/25 under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and initiated an investigation with the help of cyber and surveillance teams.
Coordinated Police Operation
Deputy Commissioner of Police (Crime) Kamlesh Dixit said the racket was uncovered through a coordinated investigation.
He stated that the accused had created multiple shell companies using forged documents and used them to fabricate invoices and e-way bills showing fictitious supply of goods. These fake documents were then used to sell illegal input tax credit to companies in exchange for commission.
Preliminary investigation indicates that the fraud involved transactions exceeding Rs 1.77 crore.
Investigation Continues
Authorities believe the racket may have links to a larger network involved in GST fraud and fake ITC claims. Investigators are currently examining the seized electronic devices and financial records to identify other firms and individuals who may have benefited from the illegal input tax credit.
Officials said further arrests and financial trail analysis are likely as the investigation progresses.
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