A major GST fraud linked to Aligarh has been uncovered, where fake firms were created on paper to show large-scale purchase and sale transactions and fraudulently claim Input Tax Credit (ITC). Acting on the case, STF arrested a key accused, Altaf Sojatwala, from Ahmedabad in Gujarat. Investigations suggest the organized network caused an estimated tax loss of nearly ₹200 crore across multiple states.
The case dates back to 2024, when the GST investigation wing flagged suspicious activity linked to a firm named “Jai Shriram Enterprises,” allegedly operating from the Civil Lines area of Aligarh. Initial findings revealed that the firm showed sales worth ₹66.34 crore on record, despite lacking any credible business activity on the ground.
Fake Purchases from Shut Firm
Further probe revealed that the firm had shown purchases from “Star Enterprises,” a company that had already been shut down a year earlier and had zero recorded supply. Despite this, fake invoices were generated to project large transactions, enabling the firm to claim ITC exceeding ₹12.37 crore.
When officials physically verified the registered address at Gurudwara Road in Civil Lines, no such firm was found to be operating there. Local residents confirmed that neither the business nor any associated person was known in the area. Additionally, the mobile number linked to the firm’s registration was found switched off, strengthening evidence of fraudulent intent.
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Akash Piyush Soni Network Uncovered
Following the findings, a case was registered and the probe was expanded. During investigation, STF uncovered a larger network allegedly operated by Akash Piyush Soni, who, along with associates, used fake identities to register multiple shell companies.
The modus operandi was systematic—fake invoices and e-way bills were uploaded on the GST portal without any actual movement of goods. Transactions were shown on paper, funds were routed through bank accounts, and later returned after deducting commission. This mechanism enabled the creation and sale of fraudulent ITC to genuine businesses, resulting in significant revenue loss to the government.
Ahmedabad Raid Yields Key Arrest
In a major breakthrough, STF teams conducted a raid in the Gaekwad Haveli area of Ahmedabad and arrested Altaf Sojatwala. During the operation, one laptop, two mobile phones, a pen drive, and ₹35,700 in cash were recovered. The accused is being brought to Uttar Pradesh on transit remand for further questioning and legal proceedings.
During interrogation, it was revealed that over 50 bogus firms were created using the email ID and mobile number linked to Jai Shriram Enterprises. The network also floated other shell entities such as “Gajanan Traders” and “Amol Enterprises” to facilitate fraudulent transactions.
Investigating agencies are now tracing financial trails, digital records, and interstate links connected to the racket. Officials believe the case may expose a larger GST fraud syndicate operating across multiple regions.
The probe is ongoing, and more arrests are likely as authorities tighten scrutiny on fake firm registrations and fraudulent ITC claims, which have emerged as a major challenge for tax enforcement agencies.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
