Ludhiana: A major fake GST billing racket spanning Uttar Pradesh and Punjab has come under investigation after authorities uncovered an alleged network that used a single Aadhaar number with two different photographs to create fraudulent companies and generate fake invoices worth nearly ₹90.25 crore. Investigators believe the identity of a young man, whose Aadhaar card was allegedly collected about a decade ago on the pretext of arranging overseas employment, was later misused to establish shell entities and facilitate large-scale tax fraud.
The case was registered at Chetganj Police Station in Varanasi following a complaint by an officer of the Uttar Pradesh State Tax Department. During the investigation, officials identified M/s Sohan Enterprises as a suspicious entity that had been registered using allegedly fabricated documents. Records showed the company was registered at an address in Lahurabir, Varanasi, with Sohan Kumar, a resident of Bijnor, listed as its proprietor.
When tax officials inspected the registered address in April 2025, they reportedly found no office, employees, inventory, or business activity. Investigators concluded that the lease agreement used for GST registration was allegedly fabricated and that the company existed only on paper without conducting any genuine commercial operations.
According to investigators, the firm allegedly issued fake GST invoices worth around ₹90.25 crore without supplying any goods or services. Based on these invoices, fraudulent claims amounting to nearly ₹2.70 crore were allegedly made towards input tax credit and GST refunds. Preliminary findings indicate that many of the invoices were generated in the names of companies located in Ludhiana, Khanna, and Mandi Gobindgarh in Punjab. Authorities are now verifying whether those firms are legitimate businesses or shell entities created solely for fraudulent transactions.
The investigation gained further momentum after digital forensic analysis traced the IP addresses used in the fake billing operation to a rented property in Chet Singh Nagar, Ludhiana. Investigators found that the premises had initially been rented by one individual before being sublet to another in alleged violation of tenancy rules. Officials suspect that the location served as an operational base for the fake GST network.
One of the most significant aspects of the investigation involves the alleged manipulation of an Aadhaar identity. According to police, the Aadhaar card used to execute the rental agreement carried the genuine Aadhaar number and personal details of a resident of Jagraon, but the photograph had allegedly been replaced with that of another individual. During questioning, the actual Aadhaar holder reportedly told investigators that nearly ten years ago, unknown persons had collected Aadhaar cards from around 50 young men by promising overseas jobs and paying each of them ₹10,000. The cards were returned the following day, but investigators suspect digital copies may have been created and later misused.
The Uttar Pradesh Police subsequently obtained a search warrant to recover electronic evidence from the Ludhiana premises. However, before the search could be conducted, a Sessions Court stayed the warrant after a revision petition was filed. The court has now sought the complete case records and issued notice to the investigating agency. Investigators are also examining who filed the petition, as the actual Aadhaar holder has reportedly denied ever renting the property or having any connection with the alleged operation.
Renowned cybercrime expert and former IPS officer Prof. Triveni Singh said that the misuse of identity documents has become a major tool for organised financial crime. He noted that fraudsters increasingly exploit Aadhaar, PAN and other identity documents to create shell companies, obtain GST registrations and execute fake billing operations. He advised citizens never to share copies of identity documents without proper verification and to immediately report any suspected misuse to the authorities.
Investigators are now examining the financial transactions, digital evidence, banking records and individuals linked to the alleged network. Authorities believe the probe could expose a much larger fake GST billing syndicate operating across multiple states and identify those responsible for orchestrating the suspected tax fraud.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
