Ghaziabad. A major case of tax evasion worth ₹27 crore has surfaced in the Indirapuram area, following a detailed investigation by the state tax department that exposed a suspected fake firm used to illegally claim Input Tax Credit (ITC). The discovery has triggered an intensified probe into a wider network believed to be involved in systematic GST fraud.
Ghost Firm Triggers Tax Storm
According to officials, a firm named Dharmesh Enterprises was registered in 2025 at an address in Vasundhara Sector-2. At the time of registration, supporting documents such as bank account details and electricity bills appeared valid, allowing the registration process to be completed without immediate suspicion. However, discrepancies began to emerge during later verification.
Investigators found that the firm had shown business transactions worth nearly ₹60 crore during the financial year 2025–26. However, no corresponding physical or operational evidence of such business activity could be established. This mismatch between digital filings and ground reality raised serious concerns within the tax department.
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₹16.17 Crore ITC Claim Under Scanner
A physical inspection conducted at the registered address further confirmed the suspicion. Officials found no office setup, no employees, and no signs of any commercial operations. Local inquiries also revealed that no such business was ever functional at the location, indicating that the entity existed only on paper.
Preliminary findings suggest that the firm had fraudulently claimed ITC worth ₹16.17 crore. Additionally, a tax liability of around ₹10.91 crore was allegedly adjusted using fake credit, resulting in significant loss to the government exchequer. Officials believe the structure of transactions indicates a planned and organized tax evasion model rather than an isolated irregularity.
Authorities suspect that such fake entities are primarily created to generate false billing, inflate turnover, and illegally pass on ITC benefits without any actual supply of goods or services. By routing fake invoices through multiple layers, the real origin of transactions is concealed, making detection more difficult.
₹60 Crore Paper Transactions Raise Red Flags
Following the discovery, an FIR has been registered, and the investigation has been expanded to trace the entire network behind the alleged fraud. Officials are now examining whether multiple firms are operating under a similar pattern across different locations, possibly forming a larger syndicate.
A digital forensic investigation has also been initiated. Teams are analyzing GST portal data, banking transactions, e-way bills, and other financial records to reconstruct the complete money trail. The objective is to identify all individuals and entities connected to the fraudulent transactions.
Wider GST Racket Suspected
Experts in taxation and compliance have noted that such cases highlight a growing misuse of GST mechanisms, particularly involving shell companies and fake firms. They warn that without stronger verification systems and real-time monitoring, such large-scale frauds will continue to challenge the tax administration.
In response to the case, the tax department has intensified its crackdown on suspicious registrations and fake firms. Scrutiny of new GST applications has been tightened, and verification processes are being strengthened to prevent similar incidents in the future.
Officials have made it clear that strict legal action will be taken against those found using fake documents, false addresses, or fraudulent transactions to evade taxes. Businesses have also been urged to remain vigilant and report any suspicious activity to authorities.
The investigation is currently ongoing, and officials believe that further analysis of digital and financial records may reveal additional names and entities involved in the racket. Authorities are hopeful that the full extent of the network will soon be uncovered, bringing clarity to one of the region’s significant tax fraud cases.
