In a major crackdown on tax fraud, Uttar Pradesh’s Agra police have uncovered a large-scale and organized GST Input Tax Credit (ITC) scam involving fake firms and fraudulent billing worth approximately ₹45 crore. A joint operation by the police and technical surveillance unit has led to the arrest of three key accused, while several others linked to the network remain absconding.
The entire syndicate was operating through fake companies that generated bogus invoices without any actual supply of goods or real commercial transactions, solely to illegally claim GST credit from the government.
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Fake firms used to run massive financial scam
Investigations revealed that the racket was operating through multiple shell entities, including R.S. Traders, Balaji Traders, Akash Traders, Singh Traders, and P.K. Traders. These firms were used to create fake transaction records on paper, enabling fraudulent claims of Input Tax Credit.
In reality, no physical movement of goods or genuine business activity was taking place. The sole purpose of the operation was to siphon off government tax revenue through fabricated documentation.
Case initiated after official complaint
The scam came to light on November 1, 2025, after State Tax Officer Prashant Kumar Gautam lodged a formal complaint regarding suspicious GST activities. Following the complaint, a case was registered at Lohamandi Police Station, and a detailed investigation was launched by police and technical teams.
During the probe, investigators identified a total of 23 individuals involved at different levels of the fraud, including document creation, coordination of fake firms, and financial manipulation.
Three arrested, digital devices seized
Acting on inputs, police arrested three main accused on Sunday. The arrested individuals have been identified as Wasim Raja alias Salim, Shaqib, and Shoaib, all residents of Meerut.
Officials recovered a laptop, three mobile phones, and a car from their possession. These devices were reportedly used for generating fake invoices, maintaining fraudulent records, and coordinating transactions within the network.
23 individuals linked, several on the run
The investigation has so far identified 23 people involved in the racket. While some names have been confirmed, many accused are still absconding, and multiple police teams have been deployed to trace them.
The list of absconding accused includes Rahul, Ankit, Arshad, Muzaffar, Wahid Rajput, Ashish, Javed (Ahmedabad), Sona Jha, Anas, Anand (Prayagraj), Girjesh Tiwari, Amit (Rohini, Delhi), Ankur Singh, Aneesh (Meerut), and Omkar (Aligarh), among others.
Interstate network under suspicion
Preliminary findings suggest that the scam is not limited to a single city but operates as an interstate syndicate. The group allegedly created fake firms across multiple states to carry out systematic tax evasion and fraud.
Digital documentation, coordinated fake billing, and structured financial layering were used to mislead enforcement agencies and avoid detection.
Use of digital tools and fake billing system
According to investigators, the syndicate used modern digital tools to generate fake invoices, e-way bills, and transaction records. This helped them create a convincing paper trail despite no real supply of goods.
By exploiting gaps in the GST framework, the group repeatedly claimed Input Tax Credit on non-existent transactions, causing significant revenue loss to the government.
Legal action and ongoing probe
An FIR has already been registered in the matter, and interrogation of the arrested accused is underway. Authorities are now tracing financial flows, banking channels, and additional beneficiaries linked to the scam.
Officials have indicated that the full network will soon be exposed, and strict legal action will be taken against all individuals involved.
The ₹45 crore GST ITC fraud highlights a serious breach in the tax system, exposing how fake companies and digital manipulation can be used to execute large-scale economic crimes. Investigating agencies are now working to dismantle the entire network and prevent similar frauds in the future.
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.
