Muradabad: In Nagfani police station area, a major GST fraud case has emerged involving five accused who allegedly created a bogus firm to trade fake bills. The accused, including two women from Delhi, Noida, and Gurugram, claimed GST Input Tax Credit (ITC) without conducting any actual business. The scam has reportedly caused a loss of ₹10.95 crore to government revenue.
Fake Firm Registration and Modus Operandi
According to the Deputy Commissioner of State Tax (GST), Reena, a complaint was submitted to Nagfani police naming the accused: Renu Satiya, a firm director from Machla Marg, Delhi; Vikas Ahlawat from Chijarsi, Noida; Rekha Gill from Sector 12 GF Central Park, Gurugram, Haryana; Bhushan Kumar Chandra from Harinagar, Delhi; and Chand Satiya from Machla Marg, Delhi. The group had registered a firm named “Samsung Overseas Limited” on 24 August 2018.
The firm listed its business address as Daulatbagh, Nagfani. Commissioner Reena stated that a survey conducted on 15 November 2018 revealed that no actual business activity was being conducted at the location. Consequently, the firm’s registration was canceled on 16 November 2018.
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Fraud Through Fake Billing and ITC Claims
Investigations revealed that the accused claimed GST ITC through bill trading despite the absence of any genuine business operations. Officials said that such bogus firms claiming tax credits without real transactions have become increasingly common and directly impact government revenue.
Police Action and Ongoing Investigation
Nagfani police SP, Kumar Ranvijay Singh, stated that a case has been registered against the five named accused based on the complaint. The accused include Renu Satiya, Vikas Ahlawat, Rekha Gill, Bhushan Kumar Chandra, and Chand Satiya. The police are conducting an in-depth investigation, scrutinizing all assets and transactions linked to the accused.
Systemic Concerns and Need for Oversight
Experts say the case highlights the risks posed by bogus companies and fraudulent billing. Such scams often involve companies claiming ITC using purely paper-based transactions, leading to losses of lakhs or crores from government revenue.
Official records indicate that while the bogus firm had fulfilled all legal formalities at the time of registration, the actual business never commenced. This confirmed that the fraud was premeditated and systematic.
Authorities emphasized that prompt legal action and enforcement are critical in such cases. The combined investigation by Nagfani police and the State Tax Department aims to expose the full network behind this scam. Officials indicated that further action may be taken against other suspicious firms in the coming days.
Experts also suggest that GST fraud prevention requires verifying the background and real business activity of entities before granting ITC. Relying solely on paper documents can lead to substantial revenue losses.
Considering the severity of the case, the police have assured strict legal action to apprehend the accused and safeguard government revenue. The incident has underscored the need for transparency and accountability within the commercial and taxation systems.
