A case has been registered in Agra after the state tax department flagged suspicious financial dealings involving alleged fake firms, bogus billing and fraudulent Input Tax Credit transfers, with preliminary findings pointing to transactions of more than Rs 76 crore within just four months.
Suspicious Transactions Trigger Inquiry
The matter surfaced after officials examined a current account opened in November 2024 at the Colony Branch of Punjab National Bank in the name of Dinesh Traders. The account was opened in the name of Dinesh Agarwal, and the firm’s declared business activity in official documents was commission trading.
According to the state tax department, authorities became suspicious after noticing unusually large scale transactions between December 2024 and March 2025. Officials said around Rs 76.15 crore was transacted through the account within four months of the firm’s establishment. Investigators found the scale and pace of the transactions inconsistent with the profile of a newly established business entity, leading to a more detailed inquiry.
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Probe Points to Wider Fake Firm Network
During questioning, Dinesh Agarwal reportedly told investigators that the firm had actually been set up by Sumit Jindal in his name. He alleged that Sumit Jindal regularly took his signatures on bank forms, cheques and other official papers while retaining control over all business records and related documentation.
Dinesh also told officials that he had no real knowledge of the multi crore transactions carried out through the account. Investigators suspect the account may have been used as part of a wider network engaged in fake invoicing and fraudulent tax credit transfers.
The department’s inquiry further found that another entity, Shiv Traders, had shown transactions of nearly Rs 17 crore. Officials suspect this firm too was linked to the same network and had direct connections with Sumit Jindal. Investigators also discovered that another firm allegedly associated with him already has pending tax liabilities of around Rs 9 crore. So far, the department has recovered about Rs 70.74 lakh through enforcement action linked to the case.
Officials Examine Bank and GST Trail
Authorities believe the matter extends beyond routine tax evasion and may involve an organised racket built around bogus billing, fake GST invoicing and illegal ITC pass through operations. In such schemes, firms allegedly generate invoices without actual supply of goods, enabling beneficiaries to claim tax credits unlawfully and reduce tax liabilities.
Acting on a complaint submitted by state tax officer Atul Kumar Arya, police have registered a case against Sumit Jindal, owner of SJ Enterprises, and begun a detailed investigation. Officials are now examining bank records, GST filings, transaction histories and documents linked to multiple firms connected to the suspected network. Investigators are also tracing the flow of funds, identifying beneficiary accounts and examining whether the operation extended beyond Uttar Pradesh into other states.
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.
