Aligarh: The State Goods and Services Tax (GST) Department in Aligarh has recently issued notices to 11 firms that were evading taxes for an extended period by operating through fake addresses. This large scale investigation into fake firms was launched following directives from the GST headquarters in Lucknow. As part of the probe, two such fake firms have already been identified for evading over ₹50 crore in taxes using fraudulent business details.
Fraud Rings Busted: Gang Used IDs of Poor to Run Fake Firms Worth Crores
The Department had earlier exposed a gang that was running fake firms, through which transactions of more than one crore rupees were caught. The gang had been using PAN and Aadhaar cards of economically weaker individuals to create and run these companies. This revelation prompted the Income Tax Department to issue notices as well.
GST Tightens Net: Ongoing Probe Targets Fake Firms, Says Official
Rashmi Singh, Joint Commissioner of the GST Special Investigation Branch, stated that formal notices have been dispatched to all 11 firms identified as bogus in the ongoing investigation and that a thorough investigation is underway. These companies, suspected of long-term tax evasion through forged business credentials and false addresses, are now under active scrutiny.
India’s War on Tax Evasion: Are Fake Firms the New Frontline?
As digital compliance strengthens, tax cheats evolve. The GST crackdown in Aligarh is part of a growing national pattern, where shell companies, identity theft, and invoice manipulation are becoming the preferred tools of white collar criminals. Experts warn that without systemic reforms and real time verification tools, such networks will continue to thrive in the grey areas of the economy.
Identity Theft and Economic Exploitation: The Silent Cost of Financial Crimes
The use of Aadhaar and PAN cards from poor and marginalized individuals in setting up fake companies points to a disturbing exploitation trend. Often unaware their documents are being misused, these individuals are left vulnerable to legal and financial fallout. The Aligarh case raises larger questions about data security, consent, and the ethics of fintech governance in India’s growing digital economy.