Police in Uttar Pradesh’s Bulandshahr district have busted an organised racket allegedly involved in evading more than ₹1.21 crore in Goods and Services Tax (GST) by operating fake firms and using forged documents. Three people, including a woman, have been arrested in connection with the case. Investigators allege that the accused created fictitious business entities and fabricated documents, causing an estimated ₹1,21,85,878.36 in revenue loss to the government during the 2025-26 financial year. A criminal case has been registered under various provisions of the Bharatiya Nyaya Sanhita (BNS) and the Information Technology (IT) Act, and further investigation is underway.
According to police, the arrests were made on Monday in Ghaziabad during a joint operation conducted by Kakod Police Station, the Cyber Crime Cell and the Special Investigation Team (SIT). The arrested accused have been identified as Deepa Raghuvanshi, Samar Chaudhary and Surendra. Investigators believe the trio played key roles in operating fake firms and preparing forged documents allegedly used to facilitate GST evasion.
The investigation has revealed that the accused allegedly created fictitious business establishments and used fabricated records to misuse the GST system. Police suspect the fake firms were used to show fraudulent financial transactions, resulting in substantial tax losses to the government. Investigators are now examining whether additional individuals or business entities were associated with the network.
During the operation, police seized one laptop, two Apple smartphones, a mobile phone box and related purchase documents from the accused. Officials said the electronic devices would undergo forensic examination to recover digital evidence. Investigators expect the devices to provide crucial information regarding the operation of the fake firms, preparation of forged documents and financial transactions linked to the alleged fraud.
During questioning, the accused allegedly admitted to carrying out the GST fraud through fake firms. However, police said the alleged confession is being corroborated with documentary and digital evidence as part of the investigation. Authorities are also scrutinising bank accounts, GST registrations, financial records and other relevant documents to establish the full extent of the alleged racket.
The case has been registered at Kakod Police Station as Crime No. 471/2025. The accused have been booked under Sections 318(4), 338, 336(3), 340(2) and 61(2) of the Bharatiya Nyaya Sanhita, along with Sections 66C and 66D of the Information Technology Act. The investigation covers allegations relating to cheating, forgery, identity-related offences and misuse of computer resources.
Following their arrest, the three accused were produced before a court and remanded to judicial custody. Police said the investigation is still at a preliminary stage and efforts are underway to determine how long the alleged fake-firm network had been operating and whether the total tax evasion exceeds the amount identified so far. Investigators are also examining whether similar fraudulent firms were created in other states to misuse the GST system.
Renowned cyber crime expert and former IPS officer Prof. Triveni Singh said financial crimes are increasingly being committed through forged documents, stolen digital identities and technology-enabled methods. He noted that digital forensic analysis, banking records, GST data and electronic devices play a critical role in exposing organised financial crime networks. According to him, strict monitoring and swift enforcement are essential to prevent the misuse of fake firms and fabricated digital records within the country’s tax system.
Police said a comprehensive investigation into all financial and digital aspects of the case is continuing. If the probe uncovers the involvement of additional individuals, companies or facilitators, appropriate legal action will be initiated against them. Officials added that enforcement agencies will continue taking stringent action against organised networks involved in tax evasion and other economic offences.
