Bareilly: In a decisive move to crack down on large-scale tax evasion, authorities have handed over all 13 registered GST fraud cases to a Special Investigation Team (SIT) for a comprehensive probe. The action is expected to speed up the investigation into a suspected network of bogus firms and fake billing used to claim fraudulent input tax credit (ITC) and evade taxes worth over ₹50 crore.
A Unified Probe Into GST Fraud
Officials confirmed that five cases had already been transferred to the SIT earlier, while the remaining eight have now also been brought under its purview. With this, the entire set of GST fraud cases in the district will now be investigated under a single, centralized framework, allowing for better coordination and deeper analysis of links between different cases.
Fake Firms and Fraudulent ITC Claims
Preliminary findings indicate that the fraud was carried out over the past year through a well-organized network of shell companies. These entities allegedly generated fake invoices to facilitate bogus ITC claims. By doing so, the accused were able to either reduce their tax liability or illegally claim refunds. Investigators believe that the actual scale of the fraud may be significantly higher than the current estimate as more financial trails are examined.
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Expanded Investigation Across Jurisdictions
To strengthen the probe, a dedicated SIT has been formed with a chief investigating officer from the crime branch, supported by multiple co-investigators drawn from various police stations. The expanded team is expected to conduct a time-bound and detailed investigation, focusing on identifying the masterminds and uncovering the full extent of the network.
The cases transferred earlier were registered in areas including Prem Nagar, Qila, Izzatnagar, Bithri Chainpur, and Cantt police stations. The newly transferred cases include those from Bahedi, Baradari, Shahi, Bithri Chainpur, and Izzatnagar. Bringing all these cases under one investigative umbrella is likely to help authorities establish common patterns, trace financial transactions, and identify interlinked entities involved in the fraud.
The crackdown comes amid growing concerns over GST evasion not just in Bareilly but across the state. Since 2018, more than 200 cases of GST fraud involving over ₹1,000 crore have been registered in different districts. Most of these cases are linked to fake ITC claims routed through non-existent or shell firms, pointing to a widespread and organized pattern of tax evasion.
Focus on Accountability and Enforcement
Investigators are now focusing on examining digital and financial evidence, including bank transactions, GST returns, and company registration records. Efforts are also underway to track the flow of funds and identify beneficiaries of the fraudulent transactions. Authorities suspect that the network may have connections beyond district and state boundaries, making the role of the SIT crucial in coordinating multi-level investigations.
Officials believe that the transfer of all cases to the SIT will lead to faster identification of key accused and ensure prompt arrests. It is also expected to eliminate duplication of efforts and improve coordination among investigating agencies.
The administration has made it clear that strict action will be taken against those found guilty. This includes arrest, attachment of properties, and prosecution under relevant legal provisions. Authorities have reiterated their commitment to maintaining transparency and strengthening compliance within the GST system.
As the investigation progresses, more names are likely to emerge, and additional cases may be registered. The SIT is expected to submit regular updates, and further action will be taken based on its findings.
