A major case of GST evasion involving fake addresses, paper transactions, and regulatory violations has come to light in and around the city, with three firms booked in separate cases. Authorities have initiated a detailed investigation to uncover the full extent of the suspected network behind the fraud.
The case surfaced following scrutiny by the GST department, which flagged suspicious transactions linked to Saini Trading Company, operated by Deep Saini, a resident of Moradabad. According to findings, the firm reported a turnover of approximately ₹18.21 crore, but an outstanding GST liability of ₹3.27 crore was detected. When officials attempted to verify the registered address, it was found to be fake. Based on this, a case of tax evasion amounting to around ₹3.5 crore was registered.
Yadav Trade Firm Fake Address Exposed
Investigators believe that fake addresses and paper-based transactions were deliberately used to evade tax liabilities. Such practices not only cause significant revenue loss to the government but also create unfair competition for legitimate businesses operating within compliance norms.
In a similar case, Yadav Trade Firm, linked to Krishna Gopal Yadav from Shuklaganj, was found to have evaded approximately ₹67 lakh in taxes. During verification, the registered address of the firm also turned out to be fictitious. Officials say this indicates a possible pattern where fake identities and addresses are being systematically used to bypass GST obligations.
The third case emerged in Auraiya, where two trucks transporting goods without valid e-way bills were intercepted. The goods were traced back to Siyaram Trading Company. Subsequent checks revealed discrepancies in the firm’s documentation, including an invalid address, prompting further legal action.
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Common Modus: Paper Firms, No Goods
Sources associated with the probe indicate a common modus operandi across all three cases—registering firms at fake addresses, inflating business transactions on paper, and then avoiding GST payments. In many instances, such entities exist only on paper but are actively used for generating invoices and routing transactions.
Experts point out that in such cases, digital trails, banking records, and e-way bill data play a crucial role in establishing whether actual trade actually occurred or if transactions were fabricated solely to evade taxes. Detailed forensic analysis of financial records is expected to be a key part of the ongoing investigation.
Cases have been registered against all three firms, and authorities are now examining possible links between them to determine whether they are part of a larger organized network. Officials have indicated that further action will follow if additional entities or individuals are found to be involved.
The action is being seen as part of a broader crackdown on GST fraud, particularly targeting fake registrations and shell companies used for tax evasion. Officials believe that more revelations could emerge as the investigation progresses, potentially exposing a wider network engaged in similar activities.
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.
