Fatehpur. Police in Uttar Pradesh’s Fatehpur district have busted an alleged network that used fake firms and bank accounts to carry out GST invoicing fraud and cause losses to government revenue. The investigation into a case registered at Bindki police station has revealed an alleged fraud involving transactions worth around ₹68 crore. Three accused have been arrested in connection with the case, and a smartphone has been recovered from their possession.
According to police, members of the alleged gang targeted financially vulnerable people and offered them monthly commissions in exchange for their Aadhaar cards, PAN cards, bank account details, signed cheque books and SIM cards. These documents were allegedly used to create fake firms and bank accounts. The firms were subsequently used to generate fraudulent GST invoices and claim Input Tax Credit (ITC).
Case registered in April
The case was registered at Bindki police station on April 9, 2026, on the complaint of Shailvani Singh. During the investigation, police examined electronic and documentary evidence and detected alleged irregularities involving multiple firms and bank accounts.
Investigators found that business entities created using forged documents were allegedly being used not for genuine commercial activity but for issuing fake invoices and facilitating fraudulent ITC claims.
According to investigators, documents collected from people were used to establish firms under names including JSR Sales and other entities. Bank accounts were subsequently opened in the names of these firms and allegedly used for issuing fraudulent GST invoices and passing on ITC.
Banking details obtained in exchange for commissions
Police said the alleged operation followed an organised pattern. Members of the network reportedly looked for people in need of money and offered them regular commissions. In return, they allegedly obtained critical identity and banking documents.
Once the documents were secured, firms and bank accounts were allegedly created in the names of these individuals. The account holders reportedly had little or no involvement in the actual operation of the businesses.
The alleged gang then obtained control over bank accounts, cheque books and SIM cards, which were used to facilitate transactions linked to the suspected GST fraud.
Fake billing used to claim ITC
Investigators allege that the network generated fabricated GST invoices through a chain of fake firms. These invoices were then allegedly used to claim and pass on Input Tax Credit.
Police suspect that members of the network shared commissions generated from the alleged fraudulent activities. Investigators are also examining the role of Sanjay Agarwal alias Sanjay Lala, who has been identified as the alleged mastermind of the network.
During questioning, the arrested accused allegedly provided information about the collection of documents and the creation of firms used in the suspected operation.
Three arrested from Kanpur
Police arrested three accused from Kanpur Nagar at around 1:30 pm on August 30, 2026. They have been identified as Arvind Srivastava, a resident of Gandhi Nagar, Shuklaganj, Unnao; Vivek Shukla alias Sanjay Shukla, a resident of Damodar Nagar, Kanpur Nagar; and Deepu Gupta alias Sanjeev Kumar Gupta, a resident of Gangaganj, Panki, Kanpur Nagar.
According to the investigation, Vivek Shukla allegedly introduced Arvind Srivastava to Deepu Gupta. The alleged process of collecting documents and setting up firms and banking arrangements subsequently began.
Investigation into firms and accounts continues
Police are now examining other suspected shell firms, bank accounts, GST registrations and financial transactions linked to the network. Investigators are also trying to establish how many firms and accounts were used in the alleged ₹68 crore fraud and identify the ultimate beneficiaries of the suspected fraudulent ITC.
Action has been initiated under various provisions of the Bharatiya Nyaya Sanhita (BNS), the Information Technology Act and the GST Act. Police said questioning of the arrested accused is being used to trace other members of the alleged network and locate the suspected mastermind.
The investigation is also focused on determining how the identities and banking credentials of individuals were allegedly misused and whether additional firms were created through the same method. Further arrests may follow as investigators analyse the financial trail and establish the links between the suspected entities, bank accounts and individuals involved.
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.
