Crores in reported sales found during scrutiny, but no physical trace of the firm at the declared business location; State Tax Officer files FIR in Hasanpur
Amroha – A major tax evasion racket has come to light in Amroha, where a trader allegedly created a bogus firm to evade GST running into crores of rupees. During the probe, state tax officials detected transactions and sales worth crores, yet the firm was non-existent at the registered premises.
State Tax Officer (Sector–1) Devkaran Singh has submitted a complaint at Hasanpur police station seeking action against the entity operating under the name ‘Shri Shiv Trading Company’.
GST registration obtained on Rajasthan resident’s PAN; business location shown in Amroha
According to the investigation report, Jeevanram Purkharam, a resident of Totaram Ki Dhani, Babar Magra, Ward No. 19, Jaisalmer (Rajasthan), secured GST registration on 21 June 2020 under the CGST jurisdiction, using his PAN to establish a purported scrap trading business under the name ‘Sarvashri Shiv Trading Company’.
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The principal place of business was declared as Building/House No. 12, Gajraula Road, Hasanpur, District Amroha. Two mobile numbers and an email ID were also provided at the time of registration.
Firm missing during site inspection; documents show multi-crore sales
During the physical inspection conducted by the state tax team, no operational setup, staff, warehouse or trading activity was found at the declared address.
In contrast, official GST filings reflected sales running into several crores, raising strong suspicion that the entity existed solely to facilitate Input Tax Credit (ITC) fraud and large-scale tax evasion.
Officials describe it as an ‘organised tax evasion module’
Officials stated that the modus operandi involved securing registration on a fake address, generating fabricated invoices, passing on fraudulent ITC, and causing substantial loss of revenue to the state exchequer. The department has begun a deeper review of the firm’s returns, supply chain trail, and counterparty transactions.
Authorities are also probing whether the entity was part of a wider network of fake firms across states, used to circulate ITC and create layers of artificial billing.
FIR registered; financial trail to be investigated next
Based on the complaint, police have registered a case under relevant sections of the IPC and the GST Act. The next phase of the investigation will examine the trader’s bank accounts, transaction logs, digital communication records and the IP trail linked to the GST registration.
State tax officials said preliminary findings show that the fraud may run into multiple crores, and the actual quantum of evasion could increase as the inquiry progresses.
