Two new cases of GST fraud amounting to over ₹6 crore have surfaced in the Majhola police station area, involving fake firms manipulating bill trading. Following complaints from the state tax department, the cases were registered separately at Majhola police station. Both cases will be investigated by a Special Investigation Team (SIT) formed under the supervision of SP Crime and led by CO Crime Varun Kumar.
SSP Satpal Antil stated that the two new cases have been assigned to the SIT, which is already investigating ten similar cases, eight of whose accused have been sent to jail under court orders.
State Tax Complaints Lead to Police Action
The State Tax (GST) department had recently received several complaints regarding suspicious firms. Investigations revealed that two firms operating in the Majhola area engaged in large-scale fraud to evade GST payments. Consequently, the department instructed the police to register two separate cases at Majhola police station.
First Case: M/s KKTI Impacts Pvt Ltd Fraud Exposed
In the first case, a complaint was filed by Deputy Commissioner of State Tax, Zone-4 Namit Lamba. The investigation revealed that Mohammad Shahabuddin of Jamia Nagar, Delhi, and Rakesh Kumar Bajaj of Rohini, Delhi, registered a firm named M/s KKTI Impacts Private Limited on 1 July 2017. The firm reportedly manufactured and exported brass, copper, and steel goods. Its declared address was the RTO office at Mini Bypass.
According to the Deputy Commissioner, scrutiny of the firm’s Income Tax Returns for FY 2017-18 showed a total turnover of ₹8,88,46,500. Based on this, GST liability amounted to ₹1,59,92,370, which, including interest, rose to ₹1,79,10,578. Additionally, a penalty of ₹15,99,236 was imposed.
However, during a physical verification conducted on 11 September 2025, it was found that the address listed on the portal did not correspond to the firm’s actual location. The Deputy Commissioner stated in his report that the accused had deliberately orchestrated a fraud to evade GST payments.
Police have registered cases against the directors of KKTI Impacts Private Limited, Mohammad Shahabuddin and Rakesh Kumar Bajaj, along with their unidentified accomplices. Authorities confirmed that the two new cases will also be handled by the SIT to ensure a thorough and swift investigation.
SIT Mandate: Verify Operations and Recover Losses
The SIT will verify the firms’ business operations and turnover, examine all forged documents, and determine the extent of financial losses suffered by investors and the government. Officials emphasized that the investigation is being conducted under strict supervision to ensure that those responsible face stringent legal action.
Police have also urged investors to remain vigilant and immediately report any suspicious activity while investing in firms or engaging in bill trading. Authorities stressed that rapid investigation and SIT intervention are crucial in large-scale GST fraud cases to safeguard public funds and investor interests.
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.
