The Special Investigation Branch of the State Tax Department has uncovered a major tax evasion racket involving fake billing and fraudulent Input Tax Credit (ITC) claims. The probe revealed that multiple firms were registered using a single mobile number, through which bogus transactions worth crores were shown to claim undue tax benefits.
Swastik Enterprises Probe Exposes ₹9.19 Crore Bogus Transactions
The investigation initially focused on a firm named Swastik Enterprises. Officials scrutinized the data available on the tax portal and cross-verified it with local inputs. A detailed examination of the firm’s filed returns exposed several serious irregularities.
According to findings, the firm claimed transactions worth ₹9.19 crore with companies based in Delhi, Lucknow, Gorakhpur, and Agra. These included Reshmi Rang (Delhi), Ganesh Enterprises (Lucknow), Ambe Traders (Gorakhpur), and VK Traders and Yash Enterprises (Agra).
However, upon verification, these transactions were found to be entirely fictitious. There was no evidence of actual purchase, sale, or movement of goods. Despite this, the firm had claimed ITC amounting to ₹1.71 crore.
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₹1.23 Crore ITC Blocked as 10 Firms Share Single Mobile Number
Based on these findings, authorities have blocked ₹1.23 crore of ITC reflected in the firm’s ledger. The firm itself was found to be non-existent, and proceedings have been initiated to cancel its registration.
A key revelation during the probe was that as many as 10 firms in Uttar Pradesh and Delhi were registered using the same mobile number provided by Swastik Enterprises. Out of these, five registrations have already been cancelled due to forged documentation, while the remaining are under scrutiny.
Pipe vs Paper Sales: Verification Exposes Fake Billing Network
Investigators also found glaring discrepancies in transaction records. In one instance, a firm claimed to have purchased pipes, whereas the supplier had declared the sale of paper in its records. Such inconsistencies exposed the fabricated nature of the entire network. Vehicle movement checks further confirmed that no actual transportation of goods had taken place.
Officials believe that the network was created solely to pass on fraudulent ITC. By registering multiple firms across different states and districts under their control, the accused generated fake invoices and showed bogus transactions to evade taxes.
FIR Against Ajit Singh as Tax Evasion Probe Expands
An FIR has been registered against Ajit Singh at Lohamandi police station. Authorities are now tracing the entire chain of transactions—both upstream and downstream—to identify other individuals linked to the racket.
Tax experts warn that such fake ITC claims cause significant losses to government revenue and undermine the integrity of the taxation system. They emphasize the need for stricter enforcement and technological monitoring to curb such frauds.
The Agra case has emerged as a major example of organized fake billing and tax evasion, with authorities continuing their investigation to dismantle the broader network.
