The investigation into a massive goods and services tax (GST) evasion racket involving more than ₹100 crore has widened to include a serving Central GST (CGST) inspector, triggering concern within administrative and enforcement circles. The officer, currently posted in Delhi, has been named as an accused in a first information report (FIR) registered in Ghaziabad, with teams of the Special Task Force (STF) intensifying efforts to trace and arrest him.
According to STF officials, the case pertains to an organised interstate syndicate that allegedly carried out large-scale tax evasion by floating bogus firms and generating fake e-way bills and invoices. The network is believed to have operated across Delhi, Uttar Pradesh and Haryana, exploiting loopholes in the GST system and receiving internal assistance to avoid detection.
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On Friday, the STF arrested four key accused — Delhi-based scrap trader Hardeep Singh alias Prince, Jitendra Jha, Punit Agrawal and Shivam Singh. Subsequent interrogation and scrutiny of documents revealed that the syndicate had access to departmental support, which enabled it to continue operations despite red flags raised by tax authorities.
Investigators say the role of CGST inspector Mohit Agrawal, posted in Delhi, emerged prominently during the probe. The STF claims to have gathered credible evidence indicating that the officer was actively involved in facilitating the racket. Based on these findings, he has been named as an accused in the case registered at Kavi Nagar police station in Ghaziabad.
Sources in the STF said the inspector allegedly helped keep fake firms operational, arranged restoration of suspended entities and shielded the syndicate from enforcement action. In return, he is suspected to have received illegal payments running into lakhs of rupees. Investigators believe similar assistance may have been extended to hundreds of shell firms, though the full extent of the operation is still being examined.
The probe has also brought to light the involvement of a Haryana-based individual identified as Alok. He is accused of supplying fake firms to the syndicate in exchange for a fixed commission. These entities were then allegedly used by Hardeep Singh and his associates to generate fraudulent transactions and claim wrongful input tax credit.
According to the STF, one of the arrested accused, Punit Agrawal, operated a firm named Adon Automobile, which was found to be entirely fictitious. The firm was allegedly used to route transactions worth several crores of rupees. About three months ago, Adon Automobile was suspended by tax authorities, but investigators claim it was later restored with the help of inspector Mohit Agrawal. A bribe of ₹40,000 was allegedly paid to facilitate the reinstatement.
Digital evidence strengthens case
Crucial digital evidence has further strengthened the case against the accused. Several WhatsApp chats were recovered from Punit Agrawal’s mobile phone, detailing conversations between him and the CGST inspector. The chats allegedly include discussions on monetary transactions, restoration of firms and manipulation of records to bypass scrutiny.
STF officials said the digital trail has played a key role in establishing the inspector’s involvement in the racket. “The officer’s role has clearly surfaced during the investigation. Dedicated teams have been formed to arrest him,” a senior STF officer said, adding that the agency is also probing whether other government officials or private intermediaries were part of the network.
For now, a joint investigation by the STF and tax authorities is underway. Officials indicated that more arrests are likely in the coming days, and the total amount of GST evaded could exceed the ₹100-crore estimate as the probe progresses.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
