Bareilly: The investigation into an alleged ₹100 crore GST fraud in Bareilly has widened to several business firms after the Special Investigation Team (SIT) arrested Farzan Hashmi, a resident of Karadih Bazar. According to the police, Hashmi allegedly operated a network of bogus firms from Nepal while using the name ‘Sandeep’. Technical evidence and questioning have reportedly helped investigators uncover details about the alleged network, its firms and financial transactions.
Investigators allege that the network created bogus and fictitious firms to show purchases and sales on paper, generate fake invoices and claim input tax credit (ITC). The suspected arrangement allegedly involved transactions without corresponding genuine business activity, potentially causing significant loss to the exchequer. The SIT is now examining which businesses and individuals allegedly benefited directly or indirectly from the network.
Accused allegedly operated network from Nepal
According to investigators, Hashmi is considered an important link in the case. Police allege that he had been staying in Nepal under the name ‘Sandeep’ and remained in contact with people associated with the alleged network. The SIT reportedly traced his activities using technical surveillance and digital evidence.
During questioning, investigators are trying to establish the extent of Hashmi’s alleged role. The key questions include whether he was involved only in arranging documents and managing firms or whether he played a larger role in operating the entire network. Police are also examining his contacts in Nepal and the channels allegedly used to communicate with associates in India.
Seven bogus firms under investigation
The SIT investigation has identified seven firms allegedly linked to the suspected network: Syndicate FS Traders, Siddhi Vinayak Enterprises, Maa Enterprises, Night Star, Art Life Huda, Art Life Associate and Arham Agro Foods.
Investigators suspect that these firms were allegedly used for generating business documents and facilitating transactions connected with the suspected GST fraud. The SIT is examining whether these firms conducted genuine commercial activity or were primarily used to create paper transactions.
GST returns, invoices, bank accounts, registration documents and digital records are being examined to establish the actual flow of money and transactions. Investigators are also trying to determine who ultimately benefited from the alleged ITC claims.
Sobti Infra and Sobti Infratech also under scrutiny
The investigation has also brought several other firms under the scanner, including Syndicate ND Railway, Sobti Infra, Sobti Infratech, Power and Construction, Yashi Enterprises, Penta Star, Mini Gupta and Shrinath Ji Enterprises.
The names of Sobti Infra and Sobti Infratech have added another significant dimension to the investigation. However, the mere appearance of a company’s name in an investigation does not establish criminal involvement. The SIT is examining whether these firms had any business or financial links with the alleged bogus-firm network and whether their transactions were genuine.
Investigators are also working to establish the actual ownership and control of the firms. The role of directors, proprietors, operators and other individuals connected with the transactions is being examined through technical and financial evidence.
Two accused already arrested
The case was initially registered at Kila police station, following which two accused, Saddam and Samad, were arrested. The subsequent arrest of Hashmi is expected to provide investigators with additional information about the alleged structure and operation of the network.
The SIT is now connecting documents, bank accounts and suspected transactions associated with the firms. Investigators are trying to determine who allegedly instructed the preparation of fake invoices, which businesses received them and who ultimately obtained the financial benefit from the suspected ITC transactions.
Focus on identifying actual beneficiaries
According to the police, the investigation is also focused on identifying the real owners and operators of firms named during the probe, including Sobti Infra and Sobti Infratech. Investigators are examining ownership records, financial transactions, digital communications and other technical evidence to establish individual roles.
The SIT is also expected to examine the movement of funds and determine whether money generated through the alleged transactions was transferred to other accounts or entities. The investigation could widen further if additional firms or individuals are found to have participated in the suspected network.
For now, the SIT is examining the alleged GST fraud network, bogus firms, invoices, financial transactions and digital evidence. The police are attempting to trace all individuals allegedly involved and identify the ultimate beneficiaries of the suspected scheme. The allegations remain under investigation, and any criminal liability will ultimately depend on the evidence gathered during the investigation and the outcome of judicial proceedings.
