Shahjahanpur: Shahjahanpur Police have cracked a gang involved in large-scale GST evasion using bogus companies. Three primary suspects have been arrested, and preliminary investigations indicate that the accused used falsified documents and fabricated rent agreements to siphon off ₹10.77 crore in GST, providing traders with input tax credit (ITC) benefits. Authorities also suspect the involvement of certain bank employees in facilitating the scheme.
SP stated that the case came to light on 28 May 2025, when Assistant Commissioner of State Tax, Bhavana Chandra, filed an FIR at Roza police station against individuals allegedly creating bogus firms to defraud GST revenue. To investigate, SP City constituted a Special Investigation Team (SIT), with Inspector Virendra Singh of the Gangster Cell appointed as the case in-charge.
Modus Operandi: Social Media Loan Lures and Fake Rent Agreements
According to police, the gang initially attracted individuals through social media loan advertisements. They collected personal documents such as Aadhaar cards, PAN cards, and electricity bills. Using these documents, the suspects created fake rent agreements and registered bogus GST firms.
Bank accounts were opened in the names of these firms, allowing the gang to provide ITC benefits to traders. In return, the accused earned a commission ranging from 5% to 20% of the transactions.
SP confirmed that the gang had been operational for several months and that the suspects have admitted to evading GST worth ₹10.77 crore so far.
Arrests and Seizures
On Friday, police received a tip-off that members of the gang were traveling to Lucknow to meet their lawyer. At around 6:45 am, law enforcement intercepted a black SUV near Attsalya Pul.
The arrested suspects are:
- Gaurav Yadav, resident of White House Apartments, Sector 11, Rohini, New Delhi
- Deepak, resident of Samaypur Badli, New Delhi
- Siddharth Pandey, resident of Nawabganj, Prayagraj
During the operation, police seized a large quantity of forged documents, electronic devices, tablets, CPUs, hard drives, pen drives, ATM cards, and mobile phones. The accused were produced before the court and remanded to judicial custody.
SP Statement and Next Steps
SP stated that police will now investigate the involvement of traders and bank officials who may have aided the fraud. Forensic teams are examining mobile data, bank documents, and rent agreements to map the full network of the gang.
Authorities have warned that such fraudulent operations could be active across the state, and delayed action may result in significant revenue losses.
Analysis
Experts suggest that this case highlights the growing sophistication of digital and financial fraud, demonstrating how social media and fake firms can be exploited for large-scale GST evasion. Officials note that a combination of technical surveillance, banking forensics, and proactive investigation is essential to detect and dismantle such operations promptly.
Police have claimed that they are systematically tracking all individuals connected to the gang and intend to completely expose the network.
The Shahjahanpur Police action forms part of a broader crackdown on financial crime, aimed at curbing GST fraud and corporate forgery in the state and safeguarding revenue integrity.
