Two accused have been arrested and sent to jail in a case involving a ₹59.17 lakh GST claim through bogus firms and fake bills. The arrested individuals, Saddam Hussain and Mo. Samad alias Shahrukh, admitted during questioning that they, along with Farzan Hashmi and other associates, had operated a network of fake firms and invoices for several years to claim ITC.
State tax officer Anoop Kumar had filed a report on September 4, 2025, at Thana Kila against Farzan Hashmi, proprietor of FS Traders located in Bara Bazaar Gariya. Preliminary investigation revealed that FS Traders was a non-existent firm. Allegedly, Farzan Hashmi, in collaboration with bogus companies and businessmen, claimed ₹59,17,093 as ITC, committing GST fraud.
A local SIT, formed under the directives of the state-level SIT, investigated the matter. Saddam Hussain, a resident of Mohalla Jakhira, and Mo. Samad alias Shahrukh of Khannu Mohalla were identified as the main accused. Both were arrested on Monday and sent to jail. Farzan Hashmi and some other accused are still absconding.
Mobile and WhatsApp messages reveal the fraud
Critical evidence emerged from Saddam Hussain’s mobile. On October 7, 2025, Mo. Samad had sent a voice message via WhatsApp requesting the firm’s login ID and password for verification. Further mobile analysis revealed multiple voice calls and GST details of the company. Saddam stated that he had used a SIM linked to a fake ID to file FS Traders’ returns and forwarded the details to Farzan Hashmi, who later took the phone and SIM.
Shahrukh and Samad admit running the network
During interrogation, Shahrukh admitted that he had set up the fake firm on Farzan Hashmi’s instructions, and Samad handled its operations. Both said that Farzan Hashmi paid them cash for their role. The accused network also provided ITC to other firms, expanding the scheme.
The chief investigator of the state-level SIT said that the investigation is ongoing and all remaining accused are likely to be apprehended soon. Officials noted that the case exposes the complex structure of GST frauds using fake firms and invoices.
In essence, the case highlights that fake ITC claims and bogus firm networks remain active in several states, underlining the need for regular scrutiny and investigations.
