Police have uncovered a massive racket in which 38 fake companies were set up using documents of unemployed and needy individuals on the pretext of arranging loans. The gang allegedly siphoned off nearly ₹250 crore through fraudulent Input Tax Credit (ITC) claims. A man named Rishabh from Unnao is said to be the mastermind behind the operation.
Expected ₹1 Lakh Loan, Found ₹60 Lakh in Account
Anurag Verma, a resident of RK Nagar in Nazirabad, needed a ₹1 lakh loan for his sister’s wedding. On December 19, 2025, he met Kapil Mishra and Raj alias Amardeep, who promised to arrange the loan. They collected his PAN card, Aadhaar card, educational certificates, driving licence, electricity bill, and other documents.
On January 30, he was sent to a bank branch in Govind Nagar for a photograph, where an account was opened in his name. When the loan amount did not arrive, Anurag approached the bank and was shocked to learn that a firm named Rudra Enterprises had been registered in his name and ₹60 lakh had already been deposited into the account.
During the investigation, another ₹90 lakh was credited to his account. However, since police had frozen the account, the money could not be withdrawn.
Similarly, a firm named Parvati Enterprises, opened in the name of another youth, Ujjwal, showed transactions worth ₹116.77 crore. Out of this, ₹86.69 crore had already been withdrawn in cash, while the remaining amount was frozen.
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How the Fake ITC Scam Worked
According to police, the gang issued fake invoices through shell companies:
- Firm ‘A’ would issue a bill to Firm ‘B’.
- Firm ‘B’ would claim ITC from the government based on that bill.
- In reality, no goods were supplied and no tax was actually paid.
- Fake e-way bills were generated to show movement of goods on paper.
By rotating invoices among multiple fake firms, they inflated turnover figures and fraudulently claimed crores in GST refunds.
Seizures: 30 Mobile Phones, Signboards, Bank Documents
Police recovered the following items from the accused:
- 30 mobile phones (mostly keypad phones)
- Fake SIM cards
- 52 keys
- Signboards of 12 firms
- 15 cheque books linked to various accounts
- Several banking documents
- Firm registration papers
- Two scooters and five ATM cards
- Stamps, ink pads, and signed cheques
How Fake Firms Were Created
The accused rented small shops and prepared fake rental agreements. They placed cement bags inside to click photographs for GST registration. Taking advantage of the online GST registration system, they registered firms in others’ names but used their own mobile numbers, enabling them to control the accounts and withdraw money once funds were credited.
Funds Transferred to Parvati Enterprises
Investigation revealed that several firms transferred crores of rupees to Parvati Enterprises:
- Shivansh Enterprises – ₹1.55 crore
- Dwivedi Enterprises – ₹21.31 crore
- Gupta Trading Company – ₹10.73 crore
- Jatin Enterprises – ₹13.14 crore
- Nadeem Enterprises – ₹10.34 crore
- Shankar Trading Company – ₹11.82 crore
- Shriram Enterprises – ₹3.08 crore
- Starmore Trading – ₹1.37 crore
- Kanha Trading – ₹4.58 crore
- Rudra Enterprises – ₹96.51 lakh
- Purvi Enterprises – ₹2.39 crore
A total of 38 bogus firms opened in Kanpur and Unnao have been identified, and further investigation is underway.
Mastermind Rishabh Under Probe
Arrested accused Kapil Mishra and Raj alias Amardeep Kaushik told police they worked for Rishabh Pandey of Unnao. Police have identified three names—Rishabh Pandey, Rishabh Shukla, and Rishabh Patel—and are investigating whether these refer to the same person or different individuals. Others named Pratham, Rajat, and Sahil are also being searched for.
The accused admitted that they targeted poor people, laborers, and unemployed youths by offering small sums in exchange for their documents, which were then used to register shell companies on the GST portal.
Suspicion on Bank Officials
The Police Commissioner stated that such large cash withdrawals would not have been possible without possible involvement of bank employees. Information has been sought from the banks, and their role is under scrutiny.
The team that exposed the tax evasion racket will be awarded ₹50,000 in cash.
Questions Raised on GST System
The exposure of fake firms and fraudulent ITC claims has raised serious concerns about the online GST registration and monitoring mechanism.
The investigation is ongoing, and police believe more major revelations may emerge in the coming days.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
