A major network of fraudulent GST registrations and bogus billing operations has come under investigation in Punjab’s industrial hub of Ludhiana, prompting heightened scrutiny from tax authorities and law enforcement agencies. Preliminary findings suggest that several allegedly fake firms obtained GST registrations using forged documents, fabricated rental agreements, fictitious bank accounts and identities belonging to unrelated individuals. Officials believe the network may have been used to generate fake invoices and claim fraudulent Input Tax Credit (ITC), potentially causing substantial losses to government revenue.
Forged Documents Trigger Probe
Investigations conducted by the Excise and Taxation Department have revealed a series of irregularities in the documents submitted by multiple firms during the GST registration process. Authorities found significant discrepancies in the addresses, banking information and mobile numbers provided by the entities, with many details failing to match official records.
Registration Begins for FutureCrime Summit 2026, India’s Largest Cybercrime Conference
According to investigators, several firms allegedly uploaded fabricated rent agreements as proof of business premises. These documents carried the seals and signatures of notary public officials. However, when the concerned notaries were called for verification, they reportedly stated in writing that the seals and signatures appearing on the documents did not belong to them. The findings raised serious concerns that forged documentation was deliberately used to secure GST registrations.
Identities and Mobile Numbers Misused
The probe also uncovered indications of identity misuse through mobile phone registrations. With assistance from telecommunications records, officials found that some of the mobile numbers linked to the registered firms belonged to individuals who had no connection whatsoever with the businesses concerned. During questioning, several such individuals reportedly denied operating any company or participating in any commercial activity. Investigators suspect that the actual operators of the firms may have used third-party identities to conceal their involvement.
Bank account verification revealed additional irregularities. In several cases, the account numbers uploaded on the GST portal could not be traced in the records of the banks cited by the applicants. Other accounts were reportedly linked to unrelated individuals rather than the registered proprietors. Officials noted that the absence of verifiable banking credentials significantly undermines the legitimacy of the business entities involved.
Firms Existed Only on Paper
Physical verification of declared business locations produced similarly troubling results. Inspection teams visiting the addresses listed as principal places of business found that several firms had no physical presence at those locations. In some cases, investigators were unable to locate any office, warehouse or commercial activity whatsoever. The findings suggested that multiple entities may have existed only on paper and were created solely for fraudulent purposes.
Authorities also discovered discrepancies between the business activities declared during registration and the transactions reflected in tax records. Some firms had identified themselves as traders in iron and steel products, but analysis of e-way bill data allegedly revealed invoicing related to entirely different categories of goods. Investigators believe such declarations may have been designed to evade automated scrutiny mechanisms and facilitate the circulation of bogus invoices. In several instances, officials reportedly found little or no evidence of genuine commercial operations.
Multiple FIRs have already been registered against various firms and their proprietors. Individuals named in the cases include Ramandeep Singh, Jaspinder Singh, Parvinder Kaur, Krishan Kumar, Amit Kumar and Sohanjit Singh, among others. Investigators are now examining whether a larger organised network or common mastermind may be coordinating the alleged fraud.
Tax experts say fraudulent GST registrations and fake ITC networks continue to pose a significant challenge to revenue authorities across India. Such schemes often rely on shell companies, forged documentation and manipulated digital identities to create artificial transactions and claim tax benefits unlawfully. Experts emphasize that stronger digital verification systems, real-time banking validation and rigorous field inspections are critical to preventing such frauds.
For now, tax officials, police authorities and other agencies are analysing digital evidence, banking records, mobile data and registration documents to establish the full extent of the operation. Investigators say the probe is being treated as a priority, and further arrests or legal action may follow as additional evidence emerges.
