Firozabad: A suspected GST fraud involving around ₹83 crore has come to light after a fake firm was allegedly registered in the name of a disabled man who earns his livelihood by selling fruit from a roadside cart.
The Kanpur Crime Branch found during its investigation that a firm registered in Faridabad had been linked to substantial financial transactions and alleged fraudulent input tax credit (ITC) claims.
When investigators reached the registered owner’s address in Khairgarh, they were surprised to find that the man was living in a poor and dilapidated house and had no apparent connection with the large-scale business recorded in his name.
The case emerged during a routine GST investigation into commercial firms in Kanpur. The state tax department had detected indications of large-scale tax evasion. As investigators traced the transactions, they found that substantial dealings by a suspected firm in Kanpur were connected to another firm registered in Faridabad. This led officials to examine the registration details and documents of the Faridabad-based firm.
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The investigation found that the Faridabad firm had been registered in the name of a disabled fruit vendor from Khairgarh. Government records showed the firm operating in his name and reflected substantial financial transactions, while the man was actually earning a modest livelihood and supporting his family by selling fruit. Police and tax officials suspect that his identity documents may have been misused to create and operate the alleged fraudulent firm.
The tax department’s investigation indicated that around ₹83 crore in input tax credit was allegedly obtained fraudulently. An FIR was registered at Kalyanpur police station in Kanpur on June 14 on the basis of a complaint filed by a state tax officer. A case has been registered against the proprietor of KT Traders. Investigators are now examining the nature of transactions carried out through the suspected fake firm and identifying the businesses or entities that allegedly benefited from the disputed ITC claims.
The department had earlier issued notices to the firm at its registered address and to people associated with its registration. When there was no response to the notices, the investigation was intensified and the Kanpur Crime Branch became involved. Based on the address and identity details available in the firm’s records, investigators traced the registered owner to Khairgarh.
When the Crime Branch team reached his home, they found a small, dilapidated house. During questioning, investigators learned that the man earns his livelihood by selling fruit from a roadside cart. The circumstances appeared strikingly different from the large-scale business and financial transactions recorded in his name. The investigation is now focused on determining how his identity came to be linked to the Faridabad firm.
The man told investigators that he had become disabled following an accident around eight years ago. Since then, he has been supporting his family by selling fruit from a cart. He said he had no knowledge that a firm had been registered using his name and documents. He also claimed that he was unaware of the crores of rupees in business transactions and GST-related activities recorded in his name.
Investigators are now trying to determine how the victim’s identity documents allegedly reached the people behind the firm and how they were used for its registration. Bank accounts, GST records, firm documents and transaction details linked to the alleged business are being examined. These records are expected to help investigators establish who was behind the suspected fake firm and what roles different individuals may have played in the alleged ITC fraud.
The Crime Branch has summoned the victim to its office in Kanpur to record his statement and examine the documents available with him. His identity papers, banking details and other records will also be verified during the investigation. Officials said the investigation will establish who registered the firm in his name, for what purpose and who was actually involved in the alleged ₹83 crore GST fraud. Further action will be taken on the basis of the evidence collected during the probe.
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