Hamirpur: A major Goods and Services Tax (GST) fraud racket has been uncovered in Hamirpur, where an interstate gang allegedly created thousands of fake companies to siphon off tax revenues. The case, involving fraudulent input tax credit (ITC) worth over ₹7 crore, has led to the arrest of one accused, while investigations continue to trace the wider network.
The operation came to light following a joint action by local police, surveillance units, and a special operations team. Officials revealed that the gang used a deceptive but highly organized method—luring unemployed youth with promises of jobs, collecting their personal documents, and then using those credentials to register fake firms under the GST system.
Job Scam as a Front for Identity Collection
According to investigators, the arrested accused, Avinash Dubey (22), originally from Maharajganj and currently based in Delhi, played an active role in running the network. His arrest led to the recovery of multiple electronic devices, including four laptops and five mobile phones, along with crucial documents. Preliminary forensic analysis of these devices has already revealed significant digital evidence, including records of fake firms and transaction trails.
The probe has uncovered that the gang systematically gathered Aadhaar cards, PAN cards, photographs, and other identity documents from unsuspecting individuals. Using forged signatures and manipulated details, these documents were used to complete online GST registrations, creating shell companies that existed only on paper.
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Fake Firms, Fabricated Transactions
Through these entities, the accused allegedly conducted fake transactions without any real exchange of goods or services. This allowed them to generate fraudulent invoices and claim input tax credits, ultimately leading to tax evasion running into crores. Officials estimate that over 2,000 such fake companies were registered by the network, forming a vast web of financial manipulation.
One of the most startling revelations during the investigation was the discovery of firms registered at non-existent or illogical locations. In one instance, a company was shown to be operating at the confluence of the Yamuna and Betwa rivers—an address that clearly does not correspond to any actual business establishment. Such tactics were used to evade physical verification and scrutiny.
Expanding Probe and Systemic Concerns
Authorities stated that the gang operated in a highly coordinated manner, using limited resources such as a handful of mobile numbers and bank accounts to control a large number of shell entities. This structure enabled them to repeatedly cycle transactions and maintain the appearance of legitimate business activity, making detection more difficult.
Investigators also pointed out that such frauds often remain undetected initially because complaints or cases typically focus on a small number of firms. However, deeper analysis frequently reveals a much larger network operating behind the scenes. In this case, what began as a limited inquiry quickly expanded into a large-scale investigation involving thousands of entities.
Officials emphasized the need for stronger pre-registration checks and improved data integration between departments to identify suspicious patterns early. Enhanced monitoring of transaction behavior and stricter verification of business addresses could play a key role in preventing similar frauds in the future.
The investigation is still ongoing, with authorities analyzing call records, financial transactions, and digital footprints to identify other members of the gang. More arrests are expected as the network is further unraveled.
