In a major crackdown on an inter-state GST fraud network, the Special Investigation Team (SIT) has arrested the alleged kingpin, Puneet, from Agra for orchestrating a large-scale tax evasion scheme. He is accused of creating four bogus firms, showing a fake turnover of ₹269 crore, and evading nearly ₹48 crore in Goods and Services Tax (GST).
During the arrest, police recovered bank passbooks, cheque books, SIM cards, and electronic devices from his possession.
The case was originally registered on October 30, 2025, at Civil Lines police station following a complaint by the State Tax Department (Range-B). The complaint alleged that a firm named Aljaza Traders had fraudulently evaded ₹1,20,50,458 in GST through fake billing. However, during investigation, authorities uncovered links to a much larger racket.
Surveillance and banking trail analysis led investigators to Puneet, a resident of Sadar Bazar area in Agra. He was arrested from his residence on Friday night.
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Fake Billing and Input Tax Credit Fraud
Preliminary interrogation revealed that the accused had obtained GST registrations in the names of four bogus firms. These firms showed large-scale purchase and sales transactions on paper, while actual business activity was negligible or non-existent.
Using fake invoices, the accused allegedly claimed fraudulent Input Tax Credit (ITC), thereby causing a massive loss to the government exchequer. Investigating agencies are now probing the involvement of other individuals linked to the network.
Unemployed Youth Used as Fronts for Shell Companies
The probe further revealed that the gang lured unemployed youths with promises of jobs and collected their educational and identity documents. These documents were then used to register fake firms.
Authorities have also arrested four other accused — Sona alias Ashish, Kuldeep Singh, Vivek Kumar, and Suraj Rawat. According to police, the gang created more than 1,200 fake GST firms across multiple states including Tamil Nadu, Karnataka, Punjab, Haryana, Delhi, and Uttar Pradesh.
Police recovered ₹2.30 lakh in cash, laptops, multiple mobile phones, SIM cards, ATM cards, PAN cards, cheque books, passbooks, a valuable ring, and a four-wheeler vehicle from their possession.
During questioning, the accused reportedly admitted that they used to register fake companies, generate fictitious sale-purchase transactions, and claim fraudulent Input Tax Credit. The funds were routed through multiple bank accounts to make it difficult to trace the ultimate beneficiaries.
Another Racket Exposed: Documents of 2,675 Fake Firms Found
In a related operation in Lohamandi area, police arrested Ravi Singh, a resident of Bulandshahr, and sent him to jail. Examination of his seized laptop and pen drives revealed registration documents linked to 2,675 fake firms.
Authorities have identified a GST evasion of approximately ₹1 crore in this case. Several other accused — including Mayur Nagpal, Vineet, Raj Kumar Jha, Asif, and Prakash Jha — are currently absconding. Two women suspects are also under investigation.
Officials are now scrutinizing bank accounts, GST registration data, and digital evidence to trace the full extent of the fraud. Investigators suspect that the total tax evasion could exceed ₹48 crore, and further arrests are likely in the coming days.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
