Ghaziabad: Investigating agencies have uncovered crucial leads in a major GST fraud case, with the probe into a previously detected ₹100 crore fake billing racket now revealing links between a bogus firm and 50 companies based in Delhi. Forensic analysis of the accused’s mobile phones has yielded hundreds of fake invoices and multiple suspicious transactions, leading officials to suspect that the total fraud may exceed ₹200 crore.
The case, registered at Kavi Nagar police station, has now been handed over to the Crime Branch for a detailed investigation.
Mobile forensics reveals wider network
According to investigators, the Special Task Force (STF) had arrested four accused, including Delhi resident Hardeep, on January 9. Examination of their mobile devices uncovered extensive transaction records, chats and fake invoices ranging from ₹13 lakh to ₹50 lakh.
Based on this digital evidence, authorities identified 50 Delhi companies that allegedly availed input tax credit (ITC) using invoices issued by a bogus firm. Police are preparing to seek documents from these companies for verification of their GST returns and transactions.
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Hundreds of shell firms linked to racket
The probe has also indicated that hundreds of additional firms may have been involved in supplying fake invoices to the main bogus entity. This suggests a multi-layered and organised GST evasion network rather than an isolated local operation.
Officials said the fraud involved layered transactions and circular trading designed to generate and pass on fraudulent ITC, causing substantial losses to government revenue.
CGST inspector’s role under scrutiny
A significant development in the case is the suspected involvement of a CGST inspector posted in Delhi. Investigators allege that the officer misused his position to help revive a firm that had earlier been shut down during enforcement action.
Chat records and communication between the accused and the inspector have reportedly been recovered from mobile devices. The matter has been referred to the concerned department, and a separate inquiry is underway to examine the officer’s role.
Internal vigilance stepped up
In the wake of repeated GST fraud cases, departmental vigilance has been intensified. Sources indicated that some officials have been suspended while others have been transferred, and files related to recent irregularities are being reviewed to assess the role of officers and staff involved. However, there has been no official confirmation on disciplinary measures so far.
Crackdown across Uttar Pradesh
Following major STF operations, GST fraud enforcement has accelerated across Uttar Pradesh, with over 350 FIRs registered in recent months. Several networks are still under investigation, and in some cases accused persons have died during the course of proceedings.
The Ghaziabad case is considered one of the most significant, as it involves inter-state corporate links and possible internal collusion within the tax administration.
Next steps in the investigation
The Crime Branch will issue notices to the identified Delhi companies, seeking their GST filings, invoices and banking records. If fraudulent ITC claims are established, the firms may face recovery proceedings, penalties and criminal prosecution. Investigators are also tracing the digital and financial trail to identify other shell entities and the masterminds behind the operation.
