Bulandshahr: Police in Uttar Pradesh’s Bulandshahr have busted an organised racket accused of creating fake companies using forged documents to evade more than ₹1.21 crore in Goods and Services Tax (GST). In a joint operation, Kakod Police, the Special Investigation Team (SIT) and the Cyber Crime Unit arrested three suspects, including a woman, from Ghaziabad. According to investigators, the syndicate caused a revenue loss of ₹1,21,85,878.36 to the government during the 2025-26 financial year through fictitious business entities.
Police identified the arrested accused as Deepa Raghuvanshi, Samar Chaudhary and Surendra, all residents of Ghaziabad. Investigators allege that the trio had been involved in tax evasion and other financial offences by operating fake business entities for a considerable period. Officials expect the interrogation to reveal further details about the group’s modus operandi and other individuals associated with the network.
Preliminary investigations indicate that the accused used forged identity documents, fake addresses and fabricated records to register shell companies on paper. These entities were allegedly used to generate fraudulent GST-related transactions, enabling the accused to evade tax liabilities and inflict substantial losses on the government. Investigators are now trying to determine how many additional fake firms were created and for how long the racket had been operating.
Police said this is not the first action taken in the case. On January 23, 2026, three other accused, including a woman, were arrested and sent to jail in connection with the same investigation. During the course of the probe, digital evidence and other material allegedly revealed the involvement of additional members of the syndicate. Acting on these findings, police arrested three more key suspects on July 27, 2026.
During the operation, investigators seized one laptop, two Apple smartphones and a mobile phone box along with its purchase invoice from the accused. Police believe these electronic devices were used to manage fake companies, prepare forged documents, maintain digital records and facilitate financial transactions linked to the alleged fraud. The seized devices have been sent for digital forensic examination to identify additional suspects and trace financial transactions connected to the racket.
Investigators are also analysing bank accounts, GST registration records, financial documents and electronic data recovered during the operation. The probe will examine whether chartered accountants, intermediaries, business entities or other individuals assisted the accused in carrying out the alleged tax evasion. Police have not ruled out further arrests if additional evidence emerges during the investigation.
Financial crime experts say GST evasion through shell companies has become a significant form of organised economic crime. They note that verification of digital records, scrutiny of beneficiary bank accounts, monitoring of suspicious financial transactions and coordinated action among multiple agencies are critical to exposing such networks. Regular data analytics and risk-based audits can also play an important role in detecting fraudulent GST claims and preventing revenue losses.
The three accused have been produced before a court and remanded to judicial custody. The investigation is continuing under the FIR already registered at Kakod Police Station. Authorities are working to identify other members of the syndicate, trace the complete tax evasion network and establish the flow of funds. Police have stated that strict legal action will be taken against everyone found involved in the alleged economic offence based on the evidence collected during the investigation.
