A large-scale GST evasion racket has been unearthed in Bareilly after state tax authorities detected a bogus firm that allegedly caused a revenue loss of Rs 72.84 lakh by generating fake invoices and passing on fraudulent ITC. Following a departmental probe, the State Tax Department has filed an FIR at Baradari police station, opening a deeper investigation into an organised network of fake firms operating across the district.
Fake Firm 'Salim Traders' Obtained GST Registration Using Forged Documents
The FIR was lodged by Assistant Commissioner (State Tax), Zone Four, Aviral Mudgal, who stated that a firm named Salim Traders secured GST registration using forged identity documents and a false business address.
Although the entity claimed to operate from the Kalibadi area under Baradari police limits, officials found no business activity or premises at the location. The firm was fraudulently registered in the name of Nagma, a resident of Ghaziabad, whose documents were allegedly misused without her knowledge.
Fake Invoices Worth Rs 4 Crore Generated Within Two Months
Investigators discovered that the firm engaged in large-scale document fraud:
- April 2021: Fake invoices showing fictitious supplies of Rs 2.79 crore, passing on ITC of Rs 50.25 lakh
- May 2021: Forged invoices of Rs 1.25 crore, passing on unlawful ITC of Rs 22.58 lakh
The total ITC fraud amounted to Rs 72.84 lakh, prompting authorities to initiate criminal proceedings.
Organised GST Fraud Network Under Probe
Officials believe this is not an isolated case but part of a well-coordinated GST fraud syndicate. Fraudsters allegedly float dozens of fake firms using documents of daily-wage workers, poor households, and illiterate individuals, often without their awareness.
These shell firms are linked to handlers based in Delhi and Gujarat, who run a parallel system of creating fake inward and outward invoices solely to claim illegal ITC and GST refunds.
Earlier Cases Show Similar Modus Operandi
Previous investigations in the same jurisdiction reveal a recurring pattern:
- Thakur Enterprises Registered on a fake address in Nawada Shekhan→ Reported supplies of Rs 2,441 lakh→ Passed ITC of Rs 439 lakh without any real stock or premises
- Murti Enterprises Used forged rent agreements and electricity bills→ Accused of evading around Rs 149 lakh
These incidents suggest a systematic exploitation of the GST system through shell companies that exist only on paper.
Over 60 Bogus Firms Under Scanner; Accused on the Run
Police sources indicate that more than 60 fake firms may be linked to the same network. With intensified raids, several suspects have reportedly gone underground.
SP City Manush Parikh said the crime branch is scrutinising GST returns, bank transactions, and identity documents. "All evidence collected by the tax department is being analysed. Based on the findings, arrests will be made and the charge sheet will reflect the full scope of the fraud," he stated.
As the investigation broadens, officials said more FIRs and arrests are expected in the coming days.
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