In a major crackdown on tax evasion, an SIT team has arrested the alleged mastermind Bhagwan Singh alias Bhura along with his associate Ravindra from Mathura for orchestrating a multi-state GST fraud network. Investigations have revealed that the racket used fake e-way bills and shell firms to evade taxes, with losses amounting to ₹989 crore so far.
According to investigators, the network generated a fake turnover of nearly ₹5,473 crore through more than 535 bogus firms. These entities were used to carry out fraudulent billing under the guise of scrap trading, enabling large-scale GST evasion across multiple states.
‘Phone calls’ used to release seized trucks
During interrogation, Bhagwan Singh disclosed that he was responsible for ensuring the smooth movement of scrap-laden trucks across states. Even when vehicles were intercepted during checks, he allegedly managed to get them released by making phone calls to concerned officials.
Investigators have indicated possible involvement of insiders in the operation. Authorities say this angle is now under scrutiny based on the accused’s statements.
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Dozens of firms linked to single mobile numbers
The racket first came to light on October 24 last year, when GST officials intercepted two trucks carrying scrap near Umri crossing. The probe revealed that as many as 60 firms were registered using one mobile number and 62 using another, raising immediate suspicion.
Further investigation uncovered that the accused himself had created at least 33 shell firms, which were used to generate fake invoices and facilitate tax evasion.
Network spread across multiple states
The SIT found that the operation extended across Uttar Pradesh, Haryana, Rajasthan, Bihar, Jharkhand, and Punjab. The gang handled transportation of scrap consignments to destinations such as Muzaffarnagar and industrial hubs in Punjab, where entries were shown using forged documentation.
Ravindra, the co-accused, handled the technical side of the operation. He prepared computerized bilty slips, e-way bills, and firm documents, which were then shared with traders via WhatsApp. Investigators also found that foreign mobile numbers were being used to run parts of the operation.
Seizures and further leads
During the arrests, authorities recovered three mobile phones and a laptop from the accused. Officials believe these devices may contain crucial digital evidence related to the network’s operations and financial transactions.
The probe has also led to the identification of two more suspects—Hemant from Mandi Gobindgarh in Punjab and Rahul from Gurugram—who allegedly played a role in providing fake firms. SIT teams are currently searching for both individuals.
Investigation underway, more revelations likely
Officials have stated that the case is still in its early stages, and further investigation could uncover a wider network. Detailed scrutiny of all 535 firms is underway to identify additional components involved in the scam.
The case highlights the evolving methods of tax evasion, where forged documents and digital tools are being misused to exploit loopholes in the system. Authorities consider this crackdown a significant step toward curbing such organized financial frauds and tightening enforcement mechanisms.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
