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Kanpur: The State Tax Department has intensified its crackdown on fake and bogus firms accused of causing revenue losses by fraudulently claiming Input Tax Credit (ITC). Following complaints filed by departmental officials, First Information Reports (FIRs) have been registered against several firms and their operators across multiple police stations in the city. Cases reported in the Kidwainagar, Govindnagar, Kalyanpur, and Panki police station areas involve alleged ITC fraud exceeding Rs 15.40 crore. Additionally, a separate FIR was lodged at the Bajaria police station against another firm for allegedly claiming over Rs 19.85 lakh in improper ITC. Departmental inspections revealed that the declared business addresses of several firms did not exist, while others created paper records of purchases and sales without any actual trade.
Fake Addresses and Forged Documents
In the first case uncovered during the departmental probe, an FIR was registered at Kidwainagar police station against Munendra Singh, the operator of Balaji Traders. According to the complaint by State Tax Officer Shuchi Rai, the firm registered its GST address at Star Property Apartment in Nayapurwa, M Block, Kidwainagar, but no such location was found during verification. The electricity bill submitted for registration was also allegedly tampered with. Officials allege that the firm obtained over Rs 11.50 crore in bogus ITC during the financial years 2025-26 and 2026-27 by showing fake inward supplies.
In a second case, Assistant Commissioner Kavita Srivastava filed a complaint at Govindnagar police station against Harshit Singhani, operator of Ratanlalnagar-based Singhani Enterprises. The firm had shown purchases from Maurya Traders and Ramvilas Traders, yet no firm was found operating at the declared business site. Officials accused the operator of claiming nearly Rs 3.90 crore in illegal ITC through fabricated paper transactions.
Multiple Cases Across Kalyanpur and Panki
At Kalyanpur police station, Deputy Commissioner Vinay Kumar Gautam lodged an FIR against Imran Hussain, a resident of Khyora Lakhanpur and operator of HI Traders, over an alleged ITC theft of Rs 1.58 crore. Registered to trade in iron scrap, flat-rolled iron products, wire, and cement, the firm illegally availed Rs 20.99 lakh in ITC from one entity and Rs 1.03 crore from another. Despite having zero ITC in April 2025, the firm went on to claim Rs 34 lakh in tax credits.
Action was also initiated against two firms in the Panki area. On the complaint of Deputy Commissioner Sushma Singh, an FIR was filed against Jaipur resident Raunak Sharma, operator of MS RS Services, for an alleged Rs 3.85 crore ITC theft. He had listed a PG boys hostel in Ratanpur Colony as the business address, where no office existed. Another FIR at Panki police station named Balaji Enterprises operator Sanjeev Tiwari for allegedly stealing Rs 2.51 crore in ITC by showing purchases from four different firms. A separate report at the same station also booked the operator of M/s Real Enterprises.
Improper Claims Uncovered in Bajaria
In Bajaria police station, Assistant Commissioner Kavita Srivastava filed a complaint against the operator of Imran Traders for fraudulently claiming over Rs 19.85 lakh in ITC. Registered under GST on February 9, 2025, the firm showed purchases worth Rs 1,10,32,114 from Rahul Enterprises in the financial year 2025-26 and claimed Rs 19,85,780 in ITC. However, portal records showed no corresponding purchases by Rahul Enterprises. When officials inspected Imran Traders’ declared address on Malviya Road on September 12, 2025, the firm did not exist. Bajaria Station House Officer Arvind Sharma confirmed that a case of fraud and use of forged documents has been registered. Police will now examine the GST records and alleged transactions of all booked firms.
