A fraud ring has been uncovered in Etah, with five shell firms allegedly claiming GST input tax credit (ITC) refunds totalling INR 2.57 Crore. What’s more startling: three government tax officers are among the accused. The case centres around firms registered in Jalesar that claimed refunds using fake documents and collusion.
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Bogus Firms, Bogus Refunds
State GST officials identified five companies—Shyam Enterprises, Srishti Enterprises, Om Artificial, Nidhi Enterprises, and Jain Enterprises—all registered in Jalesar. These entities submitted fake ITC refund documents to secure government payouts. During departmental restructuring on July 1, these firms were moved to Zone 1 – Etah, which brought the refund anomalies to light. A GST intelligence team raided their addresses on August 27. The units were found to be non-operational, confirming suspicions.
A case was filed on August 28 at the Kotwali Nagar police station, underlining the severity of the fraud. It alleges that Asst. Commissioner Sushil Kumar, State Tax Officer Prashant Kumari, and Principal Assistant Dushyant Kumar colluded with these fake firms—knowingly facilitating refund issuance, resulting in an estimated financial hit of INR 2.57 Crore to the state exchequer.
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The Bigger Picture
GST refund systems are designed to boost exporters and prevent cascading tax burdens. But such large-scale misuse—backed by insider help—exposes deep systemic vulnerabilities. The involvement of senior officials raises critical questions about internal audit integrity and oversight.
Senior tax authorities are now investigating further. All implicated officers have been suspended pending departmental review, and the case has been referred to higher-level oversight for further action.