Agra | A major GST fraud has been uncovered in Uttar Pradesh’s Agra, where a fake company was allegedly used to fraudulently claim Input Tax Credit (ITC) worth ₹1.63 crore. Investigations have revealed that the accused generated bogus invoices worth nearly ₹80 crore to run a large-scale tax evasion network. Police have arrested three people, including a scrap trader, in connection with the case and sent them to judicial custody.
The case came to light after State Tax Department officer Amir Chand lodged an FIR at the Lohamandi police station on December 1, 2025. The complaint alleged that GST registration was obtained using forged documents and the firm was subsequently used to illegally claim tax benefits on a massive scale. The investigation was initiated immediately after discrepancies were flagged in the filings.
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Police findings revealed that the registered address of the firm “SK Sons” did not actually host any business activity. When officials visited the location mentioned in the records, they found no office setup, no stock, and no evidence of any commercial operations. The entire entity existed only on paper, created solely to issue fake invoices and generate fraudulent ITC claims.
The arrested accused have been identified as Aman Dang, a resident of Krishna Colony in Jeevni Mandi; Saurabh Singh from Pratiksha Enclave; and Ram Avtar Sharma from Prem Vihar. According to Assistant Commissioner of Police (ACP) Lohamandi Gaurav Singh, the accused played different roles in the operation, indicating a structured and coordinated fraud network.
During interrogation, it emerged that Ram Avtar Sharma allegedly designed the entire scheme to create a fake business entity. To execute the plan, he used the identity documents of a labourer named Sagir Khan, who was falsely projected as the proprietor of the firm. His Aadhaar and PAN details were misused to open a bank account with Bank of Baroda, which was then used for transactions linked to the fake business.
A SIM card was also issued in the same name to ensure that the financial trail and communication channels appeared legitimate. Investigators said these steps were taken to give the fraudulent firm a genuine operational appearance and avoid detection by tax authorities.
The company was registered under the name “SK Sons,” with its official address shown as Jagannpur Bela in Khelgaon, Dayalbagh. However, verification of the address revealed forged rent agreements and fabricated electricity bills, all of which were used to complete the GST registration process. None of the submitted documents could be authenticated during inspection.
Authorities stated that through this fake entity, invoices worth approximately ₹80 crore were generated. These bogus bills were then used to illegally claim Input Tax Credit of ₹1.63 crore, causing significant loss to government revenue. The entire operation was structured to simulate genuine trade activity while actually existing as a paper-based fraud.
Officials further noted that such GST fraud cases often rely on identity theft and fabricated documentation, making detection difficult at early stages. In this case, the use of a labourer’s identity highlights how vulnerable individuals are exploited to create shell companies and banking channels.
Experts pointed out that fake billing networks have become a major concern under the GST regime, as they allow tax evasion through circular trading and artificial transactions. Such systems not only impact revenue collection but also distort fair market competition.
Police have now intensified the investigation into the financial trail, digital records, and possible links with other shell firms operating in the region. Officials believe more arrests are likely as the probe expands, and additional layers of the fraud network may soon be uncovered.
