Mainpuri | January 11, 2026: A major goods and services tax (GST) evasion racket involving nearly ₹25 crore has been uncovered in Mainpuri, with the arrest of two Delhi-based accused exposing an organised tax fraud network. The action by the cyber police has revealed how fake registrations, forged documents and fabricated transactions were systematically used to inflict significant losses on government revenue.
Complaint Triggers Probe Into Suspicious GST Filings
The case was registered following a complaint from the GST department, after discrepancies were detected in the filing patterns of certain firms. Investigators found that the accused targeted poor and unemployed individuals, luring them with promises of jobs and using their identity documents to set up shell companies with no genuine business activity.
According to officials familiar with the probe, two FIRs were registered at the Sadar Kotwali police station around two months ago against bogus firms suspected of tax evasion. The investigation was subsequently handed over to the cyber police, while parallel teams analysed financial trails, banking records and digital evidence. This multi-layered scrutiny led investigators to identify two suspects operating from Delhi.
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How Identity Documents Were Exploited
On Friday, police teams arrested Chandan Mishra and Sanjeet Singh and brought them to Mainpuri for questioning. During interrogation, investigators confirmed that the firms registered in various names existed only on paper. Large volumes of fake GST invoices and e-way bills were generated in the names of these entities to create the illusion of business transactions.
Fake Invoices and E-Way Bills Used to Create Paper Transactions
Investigators said the accused obtained Aadhaar and PAN cards from vulnerable individuals under the pretext of employment. Using these documents, bank accounts were opened and GST registrations were secured. These firms were then used to issue fraudulent invoices and e-way bills, enabling tax evasion and the wrongful circulation of goods on paper without any physical movement.
The probe revealed a clear division of roles between the two accused. Chandan Mishra allegedly handled accounting operations, GST return filings and invoice generation, while Sanjeet Singh arranged addresses, premises and other documentation required for registering fake firms. Together, they allegedly persuaded individuals to lend their identities for small sums of money, later using those identities to run large-scale fraudulent operations.
The two cases registered at Sadar Kotwali involve an estimated GST evasion of around ₹25 crore. Investigators said preliminary findings establish the direct involvement of both accused in these cases. During questioning, it also emerged that nearly 150 fake firms had been used over time to generate bogus GST invoices and e-way bills.
Arrests in Delhi and Wider Network
Further investigation revealed that Chandan Mishra is already facing a cybercrime case in another district of Uttar Pradesh. Authorities are coordinating with the concerned district police to obtain case details. Investigators are also mapping the full extent of the network to determine how many districts and states were affected and whether additional intermediaries or beneficiaries were involved.
Searches conducted during the arrests led to the seizure of four mobile phones, one laptop and documents linked to 12 GST-registered firms. Officials believe the digital devices and paperwork will help reconstruct transaction patterns, identify additional shell entities and estimate the actual scale of tax evasion beyond the preliminary figure.
Authorities Signal Tighter Monitoring Ahead
The investigation remains ongoing, with agencies examining financial records and digital communication to identify other members of the syndicate. Officials indicated that more arrests are likely as the probe progresses. Authorities have also signalled tighter monitoring of GST registrations and transaction patterns to prevent similar frauds in the future.
Enforcement agencies said coordinated action will continue to dismantle organised tax evasion networks and ensure accountability, stressing that misuse of identity documents and fake business registrations will attract strict legal consequences.
